Meta's AI Spending Gamble 🎲

Plus, Arm’s weak future outlook.

August 01, 2024

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Today is Thursday, August 1, 2024.

The Early Bird Index today is 72.00.

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Meta's AI Spending Gamble 🎲 

Meta Platforms (Nasdaq: META) jumped 7.17% in after-hours trading on Wednesday after reporting earnings and revenue for the past quarter that were better than expected.

Powering the Story: Despite the strong financial results, Meta raised eyebrows on Wednesday after increasing its spending for the following year because of the cost of artificial intelligence research and product development.

Early Bird’s Nest Egg Gains: AI is expensive for Meta Platforms because of complex infrastructure requirements, ongoing operational costs, and the development of frontier AI models.

Final Thoughts: The company’s Reality Labs VR unit lost $4.5 billion in the quarter, yet overall revenue for Meta still grew.

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Notables

Notable Earnings Today: Apple (Nasdaq: AAPL), Amazon (Nasdaq: AMZN), Moderna (Nasdaq: MRNA), Intel (Nasdaq: INTC), DraftKings (Nasdaq: DKNG), Roku (Nasdaq: ROKU), Snap (NYSE: SNAP), Twilio (NYSE: TWLO), Block (NYSE: SQ), Coinbase Global (Nasdaq: COIN), DoorDash (Nasdaq: DASH), Booking Holdings (Nasdaq: BKNG), Hershey Foods (NYSE: HSY), Hertz Global (Nasdaq: HTZ), Crocs (Nasdaq: CROX), Clorox (NYSE: CLX), Shake Shack (NYSE: SHAK), Roblox (NYSE: RBLX), U.S. Steel (NYSE: X), Labcorp Holdings (NYSE: LH), Wayfair (NYSE: W), Sirius XM (Nasdaq: SIRI), Mobileye Global (Nasdaq: MBLY), ConocoPhillips (NYSE: COP), Biogen (Nasdaq: BIIB), Kellanova (NYSE: K), Eaton (NYSE: ETN), Canadian Natural Resources (NYSE: CNQ),  AAON (Nasdaq: AAON), ACI Worldwide (Nasdaq: ACIW), Adaptive Biotechnologies (Nasdaq: ADPT), ADT (NYSE: ADT), Agnico-Eagle Mines (NYSE: AEM), Air Lease (NYSE: AL), Air Products (NYSE: APD), Alignment Healthcare (Nasdaq: ALHC), Allegro Microsystems (Nasdaq: ALGM), Altair Engineering (Nasdaq: ALTR), Altice USA (NYSE: ATUS), Ametek (NYSE: AME), Aptiv (NYSE: APTV) Ardelyx (Nasdaq: ARDX), Arrow Electronics (NYSE: ARW), Atlassian (Nasdaq: TEAM), BCE Inc (NYSE: BCE, Becton Dickinson (NYSE: BDX), Beacon Roofing Supply (Nasdaq: BECN), Beazer Homes (NYSE: BZH), Bio-Rad Labs (NYSE: BIO), Bright Horizons (NYSE: BFAM), Brookfield Infrastructure (NYSE: BIP), Cable ONE (NYSE: CABO), California Water (NYSE: CWT), Camtek (Nasdaq: CAMT), Canada Goose Holdings (NYSE: GOOS), Clearfield (Nasdaq: CLFD), Clearway Energy (NYSE: CWEN), Cloudflare (NYSE: NET), Corsair Gaming (Nasdaq: CRSR), Cummins (NYSE: CMI), Custom Truck One Source (NYSE: CTOS), Dominion Energy (NYSE: D), Driven Brands (Nasdaq: DRVN), Dun & Bradstreet (NYSE: DNB), El Pollo Loco (Nasdaq: LOCO), Entergy (NYSE: ETR), EVgo Inc (Nasdaq: EVGO), Exelon (Nasdaq: EXC), Federal Realty (NYSE: FRT), Floor & Decor (NYSE: FND), Fox Factory Holding (Nasdaq: FOXF), Fresh Del Monte (NYSE: FDP), Gen Digital (Nasdaq: GEN), GoDaddy (NYSE: GDDY), Grainger (NYSE: GWW), Grid Dynamics (Nasdaq: GDYN), Huntington Ingalls (NYSE: HII), Hercules Capital (NYSE: HTGC), ICF International (Nasdaq: ICFI), Installed Building Products (NYSE: IBP), Ionis Pharma (Nasdaq: IONS), Iron Mountain (NYSE: IRM), Janus Henderson Group (NYSE: JHG), Kimco Realty (NYSE: KIM), Kirby (NYSE: KEX), Kontoor Brands (NYSE: KTB), Lithia Motors (NYSE: LAD), MACOM Tech (Nasdaq: MTSI), Marathon Digital Holdings (Nasdaq: MARA), Matson (NYSE: MATX), MercadoLibre (Nasdaq: MELI), Merit Medical (Nasdaq: MMSI), Microchip (Nasdaq: MCHP), MicroStrategy (Nasdaq: MSTR), Middleby (Nasdaq: MIDD), Monolithic Power (Nasdaq: MPWR), Motorola Solutions (NYSE: MSI), MP Materials (NYSE: MP), nLIGHT (Nasdaq: LASR), Neurocrine Biosciences (Nasdaq: NBIX), Omnicell (Nasdaq: OMCL), Paylocity (Nasdaq: PCTY) Peabody Energy (NYSE: BTU), Pinnacle West (NYSE: PNW), Quanta Services (NYSE: PWR), Regeneron Pharma (Nasdaq: REGN), ResMed (NYSE: RMD), RingCentral (NYSE: RNG), Rocket Companies (NYSE: RKT), Sabre (Nasdaq: SABR), Schneider National (NYSE: SNDR), SolarWinds (NYSE: SWI), Sprout Social (Nasdaq: SPT), SPX Technologies (NYSE: SPXC), Syndax Pharmaceuticals (Nasdaq: SNDX), Tandem Diabetes Care (Nasdaq: TNDM), The Cigna Group (NYSE: CI), Utx Brands (NYSE: UTZ), Vertex Pharma (Nasdaq: VRTX), Varex Imaging (Nasdaq: VREX), Wendy's (Nasdaq: WEN), Wesco (NYSE: WCC), Workiva (NYSE: WK), Xcel Energy (Nasdaq: XEL), Xponential Fitness (NYSE: XPOF), XPO (NYSE: XPO).

Notable IPOs Today: AA Mission Acquisition Corp. (NYSE: AAM), MKDWELL Tech Inc. Ordinary Share (Nasdaq: MKDW), Fifth District Bancorp, Inc. Common Stock (Nasdaq: FDSB), Adagio Medical Holdings, Inc Common Stock (Nasdaq: ADGM), Centurion Acquisition Corp. Class A Ordinary Shares (Nasdaq: ALF).

Notable Equity Crowdfunding Campaigns Ending Today: N/A.

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Nonfarm Productivity (8:30 a.m. ET), Unit Labor Costs (8:30 a.m. ET), S&P Global US Manufacturing PMI (9:45 a.m. ET), ISM Manufacturing PMI / Prices / Employment (10:00 a.m. ET), Construction Spending (10:00 a.m. ET).

Arm’s Weak Outlook Hits Stock

Despite posting better-than-expected earnings results on Wednesday, the semiconductor and software company Arm Holdings (Nasdaq: ARM) fell 10.52% in after-hours trading due to a weak outlook for the upcoming quarter.

Final Thoughts: The stock is still up over 100% this year.

Carvana Posts Strong Results

Carvana (NYSE: CVNA) posted strong financial earnings and guidance on Wednesday, sending the stock up 13.71% in after-hours trading.

Final Thoughts: Carvana is up over 172% in 2024.

Weaker Guidance: EBay Stock Slips Despite Earnings, Sales Ahead Of Expectations (Investor’s Business Daily)

Good Luck: Boeing Hires Kelly Ortberg as Its Next CEO (Wall Street Journal)

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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.