Alphabet pops, Meta tanks as each company raises capex spend
Alphabet's stock rose over 6% after beating revenue expectations and raising its capex forecast, driven by strong cloud growth and AI demand, while Meta's shares dropped 9% despite strong earnings, as its increased spending plans raised investor concerns. Both companies are significantly boosting capital expenditures to support AI and data center expansion, reflecting ongoing industry momentum in AI investment. The contrasting market reactions highlight investor uncertainty about the financial impact of aggressive AI spending across tech firms.
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Alphabet's stock surged more than 6% on Thursday, while Meta shares plunged 9%, as investors digested first-quarter earnings results, which included plans to up the ante on artificial intelligence spending.The diverging stock moves show that Wall Street isn't guaranteed to applaud every tech company's AI spending spree. "The market was less united on what to make of the spending plans, with investors still trying to balance the scale of the AI opportunity against the cash required to chase it," Matt Britzman, an analyst at Hargreaves Lansdown, wrote in a Thursday research note.
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