Most important numbers for the current stock market: Morning briefs
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As many readers have heard, the big tech companies are planning to spend a ton of money on AI this year.
As recorded by Yahoo Finance’s Laura Bratton, Ethan Wolf Manand And HowleyMicrosoft’s so-called hyperscolour (msft), alphabet (googl, Goog), and Amazon (amzn), the Social Giant Meta Platform (Meta), and plans to invest a $325 billion group next year.
The stock market response to the announcements of these companies has been mixed up from time to time in the past few weeks, and it is still largely seen how these investments will change to the final outcome of these companies. Not there.
However, across the stock market, this investment direction is much less than the details.
Talk to Financial Times in a wide range of interviews published this weekendArm Holdings (arm) CEO Rene Haas said worries about the future of AI will be answered by spending plans outlined by these leading technical leaders.
“The canary in the coal mines when (technology boss) Satya Nadella or Sundal (Pichai) or (Mark) Zuckerberg says, “Are you saying it’s $800 billion I told you to do it?” I’m going to cut that in two-thirds,” Haas said. “That’s what you need to look for.”
Now, these leaders are giving a green light to the stock market, which remains in AI trade.
The revenue growth from high-tech giants like the ones mentioned above, along with nvidia (NVDA) And only a handful of others helped explain the fears about the stock market. It’s expensive by historical standards.
In the long term, Profit growth supplies stock prices. And the beauty of buying the S&P 500 (^gspc) That means that revenue growth is not exactly what exists, not as long as it exists.
The bottom line performance of “The Magnificent Seven” managed to even mask the mask over the past two years. The rest of the index’s complete revenue slump, “S&P 493. “Revenue growth will recover to include these delays only proves that it further boosts the already lucrative class of investors.
More ironically, spending plans for a few tech giants playing around with their own rules serve as yet another concentration risk in a market already full of them.
Whether it’s revenue growth, market capitalization, or investment plans, the stocks of a few companies set a tone for a large range of stock markets, for better or worse.