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US stock futures (ES=F, NQ=F, YM=F) are moving lower Wednesday morning, with the Nasdaq Composite (^IXIC) being hit the hardest this earnings season due to disappointing results from Big Tech.
As Alphabet's (GOOG, GOOGL) stock slides after reporting cloud business revenue missed estimates for the fourth quarter, higher CapEx spending targets appear to be dragging on the rest of the Magnificent Seven components — the group of tech stocks comprised of Alphabet, Apple (AAPL) Nvidia (NVDA) Tesla (TSLA) Amazon (AMZN) Meta Platforms (META) and Microsoft (MSFT).
Despite plans for increased hiring and investment, investors are questioning if artificial intelligence spending will pay off alongside concerns about slowing profit growth and whether that's affecting valuations.
Watch the video above to hear Seana Smith and Brad Smith's analysis of Big Tech companies and their spending.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
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This post was written by Josh Lynch