Investors Watch Big Tech Earnings as Questions on AI Rally Linger
Meta and Microsoft are set to open the latest round of Big Tech earnings, with investors watching closely to see whether massive spending on AI is translating into durable growth. The scrutiny comes as Alphabet has recently gained momentum, reshaping expectations in an increasingly competitive AI landscape. Together with Amazon, the companies are projected to boost spending on AI-related infrastructure and development by roughly 30% this year, pushing total outlays beyond $500 billion. Over the past three months, shares of both companies have dropped more than 6%. Amazon’s stock edged higher by just over 5% during the same period, buoyed by a November agreement with OpenAI that reassured…