Meta's AI Spending Spree đź’¸

And, Microsoft's cloud growth slows.

October 31, 2024

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Today is Thursday, October 31, 2024.

The Early Bird Index today is 73.85.

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Meta's AI Spending Spree đź’¸

Despite posting better-than-expected financial earnings results on Wednesday, Facebook parent Meta Platforms (Nasdaq: META) fell 3.18% in after-hours trading.

Financials: Meta reported earnings of $6.03 per share in the past quarter and revenue of $40.59 billion; both were better than expected.

Powering the Story: Hey Big Spender! Meta said it expects to spend at least $38 billion this year—up from $37 billion—because of artificial intelligence investments.

Early Bird’s Nest Egg Gains: Meta's increasingly high spending on AI could be a problem because monetizing new AI products like Meta AI chatbot may take years.

Final Thoughts: Regardless of these results, Meta’s stock is up 65% this year.

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Notables

Notable Earnings Today: Apple (Nasdaq: AAPL), Amazon (Nasdaq: AMZN), Uber Technologies (NYSE: UBER), Peloton Interactive (Nasdaq: PTON), Intel (Nasdaq: INTC), Norwegian Cruise Line (NYSE: NCLH), U.S. Steel (NYSE: X), ConocoPhillips (NYSE: COP), Estee Lauder (NYSE: EL), Mastercard (NYSE: MA), Utz Brands (NYSE: UTZ), Kellanova (NYSE: K), Hyatt Hotels (NYSE: H), Atlassian (Nasdaq: TEAM), Merck (NYSE: MRK), The Cigna Group (NYSE: CI), LendingTree (Nasdaq: TREE), Li Auto (Nasdaq: LI), ICF International (Nasdaq: ICFI), Roblox (NYSE: RBLX), Sirirus XM Holdings (Nasdaq: SIRI), Altria (NYSE: MO), Bristol Myers Squibb (NYSE: BMY), Ardelyx (Nasdaq: ARDX),  1-800-FLOWERS (Nasdaq: FLWS), Agnico-Eagle Mines (NYSE: AEM), Allegro Microsystems (Nasdaq: ALGM), Amcor (NYSE: AMCR), Ametek (NYSE: AME), APi Group (NYSE: APG), Aptiv (NYSE: APTV), Arrow Electronics (NYSE: ARW), Asure Software (Nasdaq: ASUR), Avient (NYSE: AVNT), Ball Corp (NYSE: BALL), BJ Restaurants (Nasdaq: BJRI), BorgWarner (NYSE: BWA), California Water Service (NYSE: CWT), Canadian Natural Resources (NYSE: CNQ), Cinemark (NYSE: CNK), Cohu (Nasdaq: COHU), Cullen/Frost (NYSE: CFR), Driven Brands (Nasdaq: DRVN), Eaton (NYSE: ETN), Ecovyst (NYSE: ECVT), El Pollo Loco (Nasdaq: LOCO), EMCOR Group (NYSE: EME), Entergy (NYSE: ETR), Enviri Corporation (NYSE: NVRI), Federal Signal (NYSE: FSS), Fox Factory Holding (Nasdaq: FOXF), Fresh Del Monte (NYSE: FDP), Generac (NYSE: GNRC), Genesis Energy (NYSE: GEL), Grainger (NYSE: GWW), Green Plains (Nasdaq: GPRE), Grid Dynamics (Nasdaq: GDYN), Halozyme Therapeutics (Nasdaq: HALO), Huntington Ingalls (NYSE: HII), IDEXX Labs (Nasdq: IDXX), Insperity (NYSE: NSP), International Paper (NYSE: IP), InterDigital (Nasdaq: IDCC), IQVIA (NYSE: IQV), Itron (Nasdaq: ITRI), Janus Henderson Group (NYSE: JHG), Kontoor Brands (NYSE: KTB), Kymera Therapeutics (Nasdaq: KYMR), Lancaster Colony (Nasdaq: LANC), Lemaitre Vascular (Nasdaq: LMAT), Lincoln Electric (Nasdaq: LECO), Lincoln National (NYSE: LNC), Madrigal Pharmaceuticals (Nasdaq: MDGL), Malibu Boats (Nasdaq: MBUU), MGP Ingredients (Nasdaq: MGPI), Mobileye Global (Nasdaq: MBLY), Onto Innovation (NYSE: ONTO), Organon (NYSE: OGN), PBF Energy (NYSE: PBF), Peabody Energy (NYSE: BTU), PHINIA (NYSE: PHIN), Quanta Services (NYSE: PWR), Radware (Nasdaq: RDWR), Regeneron Pharmaceuticals (Nasdaq: REGN), SolarWinds (NYSE: SWI), STMicroelectronics (NYSE: STM), SunCoke Energy (NYSE: SXC), Teleflex (NYSE: TFX), Trinity Industries (NYSE: TRN), Upbound Group (Nasdaq: UPBD), Verra Mobility (Nasdaq: VRRM), Viavi (Nasdaq: VIAV), Vir Biotechnology (Nasdaq: VIR), Vontier (NYSE: VNT), WEC Energy Group (NYSE: WEC), Wendy's (Nasdaq: WEN), Willis Towers Watson (Nasdaq: WTW), Xcel Energy (Nasdaq: XEL), Xylem (NYSE: XYL).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Core PCE Price Index / PCE Price Index (8:30 a.m. ET), Employment Cost Index (8;30 a.m. ET), Personal Spending (8:30 a.m. ET), Chicago PMI (9:45 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Microsoft's Cloud Growth Slows

Microsoft (Nasdaq: MSFT) fell 3.71% in after-hours trading on Wednesday despite the company’s strong financial earnings results.

Financials: Microsoft reported earnings of $3.30 per share in the past quarter and revenue of $65.6 billion; both were better than expected.

Final Thoughts: Why did the stock drop? Because Microsoft said its cloud growth will be slower than expected.

The cryptocurrency Chainlink jumped 4% on Wednesday after releasing a new Chainlink Runtime Environment upgrade.

Final Thoughts: Chainlink is down about 20% this year.

Driving to Success: Carvana Hikes Earnings Outlook As Sales Sharply Accelerate (Investor’s Business Daily)

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