Big Tech earnings: Wall Street 'underestimating' tech, Ives says
Big Tech earnings are coming next week. Microsoft (MSFT), Meta (META), and Tesla (TSLA) all report on Wednesday, while Apple (AAPL) reports on Thursday. Wedbush Securities managing director and global head of technology research Dan Ives joins Morning Brief with Seana Smith and Brad Smith to discuss what to watch during Big Tech earnings. Ives tells investors to "get the popcorn out" for Big Tech earnings, noting that Mark Zuckerberg's announcement that Meta plans to spend up to $65 billion on artificial intelligence (AI) capital expenditures (CapEx) is "the start of this massive build-out of AI CapEx that I think the Street's massively underestimating." Ives says Big Tech's massive AI spending depends on the use case for each company. "Ultimately, when you look at Meta, the AI capabilities on advertising, on subscriber growth, and ultimately, building out businesses that don't even exist today because it's all about monetizing that install base ... it's no different than the way that the hyperscalers have done it with Microsoft, Amazon, Google." the analyst explains. Ives adds, "Now it's going to start playing out on the consumer side ... Zuckerberg and Meta, they're one step ahead here in terms of where this is all heading." To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Naomi Buchanan.
