Google is moving ahead in the artificial intelligence race as strong earnings and investor confidence boost its position against rivals.
Parent company Alphabet saw its shares rise seven percent in late trading after releasing its latest financial results, outperforming its rivals. The gain also lifted futures for the tech-heavy Nasdaq 100 index.
In contrast, Meta Platform struggled to reassure investors as its shares fell more than six percent after the company raised its full-year capital expenditure forecast to $145 billion, citing rising costs.
Analysts said Meta has not yet shown a clear return from its AI investments, its consumer AI apps lag behind rivals and there is no big cloud business.
Chief executive Mark Zuckerberg defended the strategy, but acknowledged uncertainty, saying Meta does not have a “very precise plan” for how each AI product will be developed, adding: “I think we have a sense of where things need to be.”
Meanwhile, Amazon reported strong growth in its cloud division, with revenue increasing 28 percent year over year.
Microsoft also anticipates continued expansion, predicting 40 percent growth in Azure cloud sales this quarter.
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