"For several years, investors have rewarded large tech conglomerates in the "Magnificent Seven" that announced plans to ramp up capital expenditures for artificial intelligence (AI) infrastructure. The thinking was that these companies would only make such a large investment if they believed it would yield strong returns. However, in recent months, investors have begun to question whether the returns would really be as promising as many initially believed."
"Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. However, following Meta Platforms' (NASDAQ: META) recent quarter, CEO Mark Zuckerberg said he has no plans to slow AI capex, which the market did not seem to mind, given Meta stock's strong performance following the earnings release on Jan. 28. Zuckerberg is full steam ahead, apparently much to the market's delight."
Meta Platforms unveiled capital-expenditure guidance higher than Wall Street expectations while other companies have faced investor skepticism over large AI-related capex and debt-financed ambitions. Investors initially rewarded major tech firms planning AI infrastructure spending, but recent doubts emerged about returns. Following Meta’s recent quarter, CEO Mark Zuckerberg stated no intention to slow AI capex, and the market reacted positively. Meta delivered earnings well above consensus, beat revenue by about $1.3 billion, and provided forward guidance ahead of analysts. Advertising revenue grew about 24% year over year, reflecting significant AI investments to enhance advertising effectiveness.
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