Stock Exchange: Alphabet failed high expectations – growth of technology giants wonders

At Wall Street, the stock indexes opened Wednesday’s trading on Wednesday.

The S&P 500 was a moment after the opening in 0.2 % decline, Nasdaq in 0.6 percent decline and Dow Jones roughly in the previous day’s final

Already in stock exchange futures, there was a disappointment when Google’s parent company Alphabet released his results on Tuesday after the market closed.

The company’s share opened 8.1 % on the decline.

In the last quarter of the year, the company’s net sales increased to $ 96.5 billion from $ 86.3 billion previous year.

Operational result increased to $ 31.0 billion from $ 23.7 billion. The result was better than the expectations of analysts, but the market seemed to be disappointed with the growth of cloud services.

Alphabet’s growth prospects are in its artificial intelligence services. Net sales increased by 30 % to $ 12.0 billion in cloud services. According to the CNBC news service, analysts expected 12.2 billion revenue from cloud services.

Alphabet intends to continue its major investments in artificial intelligence. Managing director Sundar pichain According to the company, the company plans to invest $ 75 billion in capital expenses this year, much more than the analysts had predicted.

The chip manufacturer was also disappointed AMDwhose share was on the stock market by 10.5 %. The company gave a weaker guidance to its data center business.

Disney In turn, it was better than expectations. The company’s streaming service and film studio brought most of the growth.

The company’s share was 4.3 %.

Growth prospects for the test

Over the past couple of weeks, American technology giant courses have also been eaten by a wealthy trade war and a Chinese artificial intelligence model Deepseek. Deepseek made the market doubt as to whether large companies have extensive artificial intelligence.

There are also deeper concerns about the valuation of the group. According to Bloomberg, the so-called “magnificent seven”, the largest group of the largest companies in the United States, is now 40 % higher than the rest of the S&P 500 index. The earnings growth in the group is still strong, but the pace is slowing down.

In the last quarter of 2023, the results of the corporate group increased by more than 50 % from the year -old, but for Bloomberg, for the now -ending quarter, the earnings growth is just over 20 percent. It would be a fifth consecutive quarter as the pace of earnings growth slows down.

From a group of companies Amazon will still report their results on Thursday and Nvidia Towards the end of the month.

“The contrast of capital expenses and the growth of cash flow is significant between the power of the power and other companies,” says General Society -Bank Investment Research Manager Andrew Lapthorne For Bloomberg on Wednesday.

In 2024, according to Lapthorne, the capital expenses of the corporate group have increased by 40 % annually.

In addition to the earnings season, the gaze of the market now has political turmoil as the United States threatens other countries on import duties. China has already slipped up the country.

Apple The share fell on Wednesday in the Premarket trade visit when the Chinese competition authorities announced that it would open an investigation into the company’s app store fees and practices.

Information on the development and trade of US private sector jobs and the S&P Global Purchase Manager and the ISM index in the service sector were still available on the economic release.

Jobs were once again created more than forecasts in January, which reported the country’s tense labor market situation.