The Growing Divide of Tech’s Winners and Losers
Alphabet, Meta shares head in opposite directions after earnings
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As a renewed AI frenzy lifts stocks to fresh record highs, investors are increasingly separating companies that can draw a line from spending to revenue growth and those that can’t.
Take Alphabet and Meta, for example. Alphabet soared last week after reporting strong growth from AI products. Meta, on the other hand, tanked as investors balked at Mark Zuckerberg’s spending spree.
Meanwhile, more spending is welcome news for chip and memory storage makers, which are on fire this year. It’s playing out again today, with tech-heavy benchmarks in South Korea and Taiwan surging more than 4.5% each.
Nvidia, on a four-day losing streak, is an outlier. There are increasing concerns that the chipmaker’s grip on the market is slipping.