Tech stocks (XLK) boosted the broader market, with the S&P 500 ending the week up nearly 1%.
META’s stock surged in line with earnings growth, with earnings of $28.65 billion versus expectations of $27.67 billion and earnings per share of $2.20 versus expectations of $2.01. Alphabet (GOOGL) announced a $70 billion share buyback, ending the week with higher sales and profits. Microsoft (MSFT) reported better-than-expected earnings, and its stock beat expectations.
Daniel Morgan, Senior Portfolio Manager at Synovus Trust, says this week’s winner is Microsoft. Morgan joined Yahoo Finance’s Julie Hyman and Diane King Hall for a recap of key tech earnings and a discussion on how AI will affect the stock prices of big tech stocks. “The best thing you can do as a CEO to make your stock grow faster is talk about AI … My biggest concern is how it will trickle in and how it will actually impact your bottom line and how it will continue to grow in the future. Or can we just improve the efficiency and productivity of our existing products?”
Read the full interview here.
Key moments of the video
00:00:02 About AI
00:00:10 About AI race winners
00:00:42 On AI’s biggest concern
video transcript
Daniel Morgan: Well, the best thing you can do to skyrocket your stock as a CEO is talk about AI, right? I now think this sounds a bit redundant. But I think Microsoft has a bit of an edge in that area. We know that Alphabet wasn’t very well received in February when it launched Bard, his rival chat bot. If you look at companies like Apple, which reports next Thursday, many of them are focused on phones.
So each has its own initiative. Meta was one of the first companies to get into AI. And they have many papers published about it. However, they seemed to fall behind some of these other players. So–but they’re all talking about it.
My biggest concern is how AI will permeate and actually impact revenue and grow profits well into the future. Or do you just make existing products more efficient and productive? That’s my biggest question, OK guys, you got an AI product. How are you going to make money with it? How will it help me in the future? That’s what we have to wait and see. But now, skyrocketing stock prices is a great buzzword.
-yes.
