In looking at the earnings releases today, it's all going to be about Microsoft and Meta. And both earnings reports will focus mostly on AI use cases.
For Microsoft, analysts are expecting another strong quarter on the back of AI-driven revenue. In particular, its cloud service Azure is going to once again carry revenue percentages amid benefiting from the AI boom.
But outside the numbers, investors will be looking to what Microsoft's future growth plans will be. Or more specifically, how will they be utilising AI to make more money. Copilot hasn't really taken off yet and there will be pressures to how they're going to make use of the heavy investments in the AI space to cover margins in 2026.
For Meta, it's also all about AI and the most important thing to watch in that regard is capital expenditure (capex). The thing to note about Meta is that everyone sees it as benefiting from AI-driven analytics to produce stronger ads revenue. In that regard, it has to severely outperform in terms of ads revenue in order to mask any continued build up in capex.
The firm already said that it will spend up to $65 billion in capex this year with their latest guidance pointing to somewhere between $64 billion to $72 billion. So, all eyes will be on whether that figure will blow up even more and what will it be next year. There are whispers that it could come in above $90 billion in 2026.
While surging capex numbers may often times be scrutinised and viewed negatively, best remember that in the current AI landscape that firms have to step up spending or risk getting left behind. That's the name of the game right now. So, Meta can get away with that so long as it continues to put up strong revenue numbers - just as we saw Alphabet did last week.
This article was written by Justin Low at investinglive.com.Hence then, the article about big tech earnings in focus after the close today was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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