A number of U.S. big tech companies fell on Wednesday as Microsoft's results signaled how the high-stakes battle for AI supremacy will cost the tech giants that have seen their shares rally in recent months on hype around the technology.
AI-related spending plan, saying deeper investments in AI are required before gains trickle to the bottom line.
"AI will generate a lot of revenue and earnings for such firms, but a lot of investors have been buying the rumor and now that we have earnings, they are taking profits," Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest said. The recent rally has driven up Microsoft's valuation. The stock is trading at 31 times 12-month forward earnings, compared to a PE multiple of 20 for Alphabet.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. stocks were rising as Microsoft and Alphabet kick off tech earnings By Investing.com*U.S. STOCKS INCH HIGHER AS MICROSOFT AND ALPHABET KICK OFF TECH EARNINGS, FED MEETING BEGINS $DIA $SPY $QQQ $MSFT $GOOGL 🇺🇸🇺🇸
Read more »
S&P 500 rises on tech strength ahead of Microsoft, Alphabet Results By Investing.com⚠️BREAKING: *U.S. STOCKS END HIGHER AHEAD OF BIG TECH EARNINGS, DOW NOTCHES 12-DAY WINNING STREAK $DIA $SPY $QQQ $IWM $VIX 🇺🇸🇺🇸
Read more »
Repairing over buying new tech | Tech This OutWith today's economy, instead of buying new, why not focus on what's already in your home. FOX 10's Syleste Rodriguez and Troy Hayden chat with Tony Tucceri of Asurion about ways to make your tech last longer.
Read more »
Google and Microsoft Paying Big to Play in AIHeard on the Street: Google and Microsoft are two very different businesses chasing the same Next Big Thing
Read more »
S&P 500 is moving on from Big Tech - it could mean smaller stock gainsThe S&P 500 is moving on from its Big Tech fixation, but that could mean smaller 3rd-quarter gains
Read more »
Dow futures lackluster after scorching rally; Big Tech earnings in focus By Reuters⚠️BREAKING: *U.S. STOCK FUTURES POINT TO HIGHER OPEN AHEAD OF BIG TECH EARNINGS AND FED; DOW SET FOR 12TH STRAIGHT DAY OF GAINS $DIA $SPY $QQQ $IWM $VIX 🇺🇸🇺🇸
Read more »