Meta presented a balance sheet of results that generated a negative impact on the company's shares and on other technology companies such as Amazon, Google (Alphabet), and Microsoft. Meta's disappointing results are largely attributed to the massive investment in artificial intelligence (AI), which has significantly raised capital expenditures, which has generated uncertainty about the company's long-term profitability.
Following Meta's financial report, the company suffered a 15% drop in the value of its shares in the after-hours markets, reducing its market capitalization by almost 200 billion dollars (168 billion euros). This collapse translated into a generalized decline in the technology sector, affecting companies that normally move in line with Meta. Despite a partial recovery during Thursday's market opening, Meta shares were still showing a significant drop.
High Investment Costs in AI Infrastructure
Meta's capital expenditures are increasing considerably, partly due to investment in servers, artificial intelligence hardware and data centers. These costs are expected to amount to between 35 billion and 40 billion dollars. However, sales for the second quarter are estimated between 36,500 and 39,000 million dollars, a figure below analysts' expectations. These rising costs and the forecast of lower sales raise concerns about Meta's financial future.
Microsoft Drives Growth with AI and Cloud Computing
While Meta is facing challenges, Microsoft is getting positive results thanks to its aggressive approach to artificial intelligence. The Copilot AI assistant, integrated into products such as Office and GitHub, has driven the growth of the Azure cloud services business. Microsoft is expected to register a growth of more than 15% in its results, which positions it favorably in the technology sector.
Google is Facing Challenges in its AI Strategy
Google, for its part, is having difficulty consolidating its position in the artificial intelligence market. Its investments in AI have shown significant errors, and the integration of AI into Bing reflects an urgency to protect its products and maintain its market share. Analysts expect Google to report net profits of more than 30% this quarter, with revenue growth of nearly 14%. However, any sign of disappointment could raise concerns about Google's leadership in the AI sector.
