AI Business is Booming for Microsoft and Google
$10 B
The world's tech giants, including Google, Microsoft, and Meta are significantly increasing AI investments, with plans to spend tens of billions more, intensifying demand for computer chips and impacting energy usage. Google intends to allocate $12 billion or more quarterly, while Meta raised its yearly spending forecast by up to $10 billion. Despite challenges, the AI revolution remains a key driver of revenue growth, with Microsoft's revenue up 17% and Google's up 15% in the latest quarter.
27%
In Q1, Meta Platforms experienced a 27% YoY revenue growth to $36.46 billion, driven by healthy ad fundamentals with ad impressions up 20% YoY and ad pricing rising 6% YoY. Despite a disappointing Q2 outlook, CEO Mark Zuckerberg emphasized long-term AI investments, including Meta AI, creator AIs, and the Advantage+ suite, aiming to bolster competitiveness, although the metaverse project is still losing money. However, they're seeing growth in Asia-Pacific advertising, up 41% YoY.
28%
Alphabet Inc., Google's parent company, surpassed analysts' revenue expectations for the first quarter, generating $67.6 billion in sales excluding partner payouts. This growth was largely driven by a 28% increase in revenue from its cloud computing unit, fueled by investments in artificial intelligence. Google's prowess in AI is seen as a key factor in closing the gap with competitors in the cloud computing market.
87%
Hootsuite's research shows paid social ads' impact: 61% discover new brands, 67% consider brands, and 79% of Gen Zers and Millennials purchase. Yet, organic and shared posts hold more sway, with 87% of Gen Zers and Millennials making purchases based on organic posts and 82% considering brands due to shared posts. Top reasons for sharing brand content include agreement (44%), informativeness (29%), and entertainment (27%).
1.4%
Nestle's first-quarter organic sales growth slowed to 1.4% due to weak consumer demand in North America and ongoing supply-chain disruptions. Despite missing expectations, the company maintains its full-year guidance of around 4% organic sales growth and expects a moderate increase in profit margin. With easing inflation pressures and a strong job market in the U.S., Nestle anticipates a recovery in consumer purchasing power, particularly in its premium segment.
48%
Tesla's adjusted net income dropped by 48%, marking its smallest quarterly profit since 2021, with total revenue declining by 9%. The company also reported a negative cash flow of $2.5 billion, its first quarterly cash burn since the onset of the pandemic in 2020. Despite these challenges, the company maintains its focus on its long-term vision, including the development of a lower-priced model and advancements in autonomous driving technology, with plans set for production in the second half of 2025.
14%
Spotify reported a first-quarter profit after boosting subscribers and adding new features, leading to a surge of up to 16% to $314.80 in New York, marking the largest jump in almost two years. Paid subscribers increased by 14% to 239 million, meeting analysts' expectations, while total active users, including those on plans with advertising, grew to 615 million, compared with the forecasted 617.9 million, slightly below expectations.