Technology corporations record positive business results

Illustration photo.

Right after trading hours on the US market, the three technology giants Meta, Microsoft and Alphabet announced their quarterly business reports, with their latest quarterly revenue and profit all surpassing Wall Street's expectations.

Alphabet - Google's parent company - was the name that received the most positive reaction after the report. In the third quarter, the company recorded total revenue exceeding 100 billion USD for the first time in its history. In particular, the cloud data business continued to record impressive growth of 34%, thanks to strong demand for AI development - the driving force that has been pushing the company's stock and many other technology names to rise strongly recently.

"AI is the leading driver of the market's advance, even at the expense of other important information such as employment or interest rates. As long as the promise of AI's potential for the economy remains viable, stocks can continue to rise," said Alexander Morris, investment firm at F/M Investments.

The huge demand for AI also prompted Alphabet to continue raising its capital spending plan this year, from the previous $85 billion to between $91 billion and $93 billion to expand data center capacity and cloud infrastructure.

Similar to Alphabet, Microsoft also recorded results that exceeded forecasts thanks to the momentum from cloud computing, with growth of up to 40%. However, the investment in OpenAI caused the company to record a loss of more than 3 billion USD, showing the pressure from increasing investment costs in the AI field.

However, the positive news is that the company has just reached an agreement to convert the above investment into a 27% stake when OpenAI transitions to a business model, along with a $250 billion commitment to continue expanding the use of Azure cloud services.

Also announced after last night's session, Meta's report was a huge disappointment to investors. This caused Meta's stock price to plummet 9% in after-hours trading. Although it still achieved revenue and profit exceeding forecasts, Meta also had to record a one-time income tax of nearly $16 billion in expenses due to the impact of the new US tax law.

Similar to the above two names, Meta is also actively investing in AI infrastructure, with capital expenditure of over 70 billion USD this year and will continue to increase next year, showing this giant's commitment to long-term investment in the AI field, despite recent losses.

Source: https://vtv.vn/cac-tap-doan-cong-nghe-ghi-nhan-ket-qua-kinh-doanh-tich-cuc-100251030154346039.htm