Shares of technology companies experienced an uptick following impressive earnings results from a major player in the industry. Amazon.com saw a rally in its shares after reporting third-quarter sales growth that surpassed Wall Street’s expectations.
Market investors and traders had high hopes for the tech giants, despite rising costs of capital across various sectors. According to Quincy Krosby, chief global strategist at brokerage LPL Financial, it seemed that these mega-tech companies would deliver the market needed results.
However, earnings reports in recent weeks have been met with mixed reactions and uncertain guidance. Even so, artificial intelligence (AI) remains a crucial topic in the tech industry. Krosby notes that Microsoft was rewarded for its focus on cloud computing and AI innovation, while Alphabet faced setbacks due to lower cloud revenue.
Google has further solidified its commitment to AI by agreeing to invest up to $2 billion in Anthropic, a leading company in this field. This investment adds fuel to the ongoing race among startups aiming to achieve groundbreaking advancements in emerging technologies.
As for Apple, its shares experienced a slight decline ahead of its upcoming earnings report. Krosby highlights the importance of Apple’s position in the market and expresses concerns about the company’s sales in China, which have reportedly been limited due to competition from Huawei’s surging smartphone sales.
It will be interesting to see how the market reacts to Apple’s earnings report next week.