The post Amazon and Dell Shine while SMCI struggles, election trades in focus appeared on BitcoinEthereumNews.com.

Key points Earnings highlights: Five of the Mag 7 companies reported earnings last week and key watch was the extent and efficacy of the AI spend. High valuation also set the bar very high, and investors were mostly left disappointed. Only Amazon and Alphabet ended the week higher, while Microsoft, Apple and Meta declined. Key stock movers: Dell was a notable outperformer in US equities last week, as it benefitted from SMCI’s 45% decline due to its worsening accounting red flags. Election sensitivity: Election trades likely to be a key focus this week. Stocks sensitive to US elections span various sectors, including Big Tech (Meta, Amazon, Tesla), defense contractors (Lockheed Martin, Raytheon), and healthcare providers (UnitedHealth, Pfizer), with potential impacts from regulatory and policy shifts. With earnings well underway and the US election fast approaching, there has been lots to talk about in markets this week, with various big names making significant moves. Big tech earnings recap – Massive AI spending bills continue Last week’s equity markets were all about megacap earnings. In the latest quarter, major players in Big Tech—Alphabet, Microsoft, Meta, Amazon, and Apple—posted impressive revenue beats, but the focus remains on their soaring capital expenditures particularly on AI investments that are not yielding immediate results. Clear outperformers in the Mag 7 space from last week’s earnings were Amazon and Alphabet. Microsoft’s fiscal first-quarter capital expenditures surged to $20 billion, marking a 79% increase year-over-year and a staggering 203% over two years. Much of this spending is directed toward enhancing its Azure cloud computing platform, which has seen a 34% revenue growth driven by AI demand. However, the heavy investments are impacting profitability, and the Q2 guidance for Cloud growth was lower than expected. Similarly, Meta reported strong earnings but the share price declined due to its rapid…

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Filed under: News - @ November 4, 2024 9:25 am