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Google's AI Costs Skyrocket 🚀
And, Snap's active advertisers boom.
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Today is Wednesday, February 5, 2025.
The Early Bird Index today is 82.80
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Google's AI Costs Skyrocket 🚀
A mixed bag of financial results did not help Google parent Alphabet (Nasdaq: GOOGL) on Tuesday, as its shares were down 7.59% in after-hours trading.
Financials: Alphabet reported earnings of $2.15 per share in the past quarter, which was better than expected. But revenue was just $96.5 billion, which was lower than expected.
Powering the Story: Alphabet said it will spend $75 billion in CapEx (capital expenditures) this year, which is higher than expected. The company is spending more to expand its artificial intelligence infrastructure, including servers and data centers.
Early Bird’s Nest Egg Gains: Investors are concerned that higher CapEx will affect profit margins. The emergence of low-cost AI models from companies like DeepSeek has raised questions about whether such massive investments in AI infrastructure are necessary.
Final Thoughts: Consider this report the downside of AI spending.
Smart Investors Are Betting On A.I. Stocks—Are You?
Experts say Trump’s $500B A.I. investment plan could transform the industry.
Meanwhile, a small but ambitious A.I. healthcare company just went public after eight years of innovation, securing $18M in funding and partnering with industry giants.
With a $120M market cap and shares still under $2, this stock may not stay cheap for long.
Notables
Notable Earnings Today: Walt Disney (NYSE: DIS), Uber Technologies (NYSE: UBER), Ford Motor (NYSE: F), Qualcomm (Nasdaq: QCOM), Arm Holdings (Nasdaq: ARM), MicroStrategy (Nasdaq: MSTR), Boston Scientific (NYSE: BSX), Harley-Davidson (NYSE: HOG), MetLife (NYSE: MET), New York Times (NYSE: NYT), Viking Therapeutics (Nasdaq: VKTX), O'Reilly Automotive (Nasdaq: ORLY), Allstate (NYSE: ALL), Stanley Black & Decker (NYSE: SWK), Skyworks Solutions (Nasdaq: SWKS), Align Technology (Nasdaq: ALGN), Old Dominion Freight Line (Nasdaq: ODFL), Aflac (NYSE: AFL), Johnson Controls (NYSE: JCI), Symbotic (Nasdaq: SYM), Impinj (Nasdaq: PI), Alpha and Omega Semiconductor (Nasdaq: AOSL), ASGN Inc (NYSE: ASGN), Bunge (NYSE: BG), Capri Holdings (NYSE: CPRI), Cencora (NYSE: COR), Cognizant Technology Solutions (Nasdaq: CTSH), CONMED (NYSE: CNBD), CSG Systems (Nasdaq: CSGS), Digi International (NasdaqL DGII), Emerson (NYSE: EMR), Envista (NYSE: NVST), FirstService (Nasdaq: FSV), Fiserv (NYSE: FI), FormFactor (Nasdaq: FORM), Hologic (Nasdaq: HOLX), Illinois Tool Works (NYSE: ITW), Kennametal (NYSE: KMT), McKesson (NYSE: MCK), Netgear (Nasdaq: NTGR), News Corp. (Nasdaq: NWSA), PTC (Nasdaq: PTC), RXO (NYSE: RXO), SiTime (Nadaq: SITM), T. Rowe Price (Nasdaq: TROW), Timken (NYSE: TKR), TTM Technologies (Nasdaq: TTMI), Vishay (NYSE: VSH).
Notable IPOs Today: Callan JMB Inc. Common Stock (Nasdaq: CJMB), K&F Growth Acquisition Corp. II Unit (Nasdaq: KFIIU), Horizon Space Acquisition II Corp. Ordinary share (Nasdaq: HSPT), Plutus Financial Group Limited Ordinary Shares (Nasdaq: PLUT).
Notable Equity Crowdfunding Campaigns Ending Today: PeduL (Wefunder), Hawai’i Coworking (Honeycomb), Ryca International (StartEngine), Auzmor (StartEngine).
Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Trade Balance / Imports / Exports (8:30 p.m. ET), S&P Global Services PMI (9:45 a.m. ET), S&P Global Composite PMI (9:45 a.m. ET), ISM Non-Manufacturing PMI / Prices / Employment (10:00 a.m. ET), Cushing Crude Oil Inventories (10:30 a.m. ET).
Snap's Active Advertisers Boom
Technology company Snap (NYSE: SNAP) jumped 5.34% in after-hours trading on Tuesday after posting good financial earnings results.
Financials: Snap reported earnings of 16 cents per share and revenue of $1.5 billion in the last quarter; both were better than expected.
Final Thoughts: Revenue surged as the number of active advertisers more than doubled in the quarter. The stock is trying to recover after a bad 2024.
Chipotle’s Lackluster Results
Chipotle Mexican Grill (NYSE: CMG) fell 5.13% in after-hours trading on Tuesday after reporting mediocre financial earnings results.
Financials: Chipotle reported earnings of 25 cents per share and revenue of $2.8 billion in the last quarter. The results were expected and nothing special.
Final Thoughts: The stock is up 19% in the last 12 months.
Trends to Watch
Mixed Results: AMD reports profit beat, but misses on data center revenue (CNBC)
Can’t Makeup These Results: Estée Lauder Stock Is Tumbling. Blame a Huge Charge and Disappointing Outlook. (Barron’s)
Time to Get Healthy: PepsiCo Adding Healthier Snacks as Consumers Shun Salt and Fat (New York Times)
Optimism: Time for a Solana price rebound? SOL futures are mixed, but onchain looks bullish (Cointelegraph)
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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.