Meta’s AI Promise, Microsoft’s Disappointing Beat & Why Google Should Spin Youtube
Prof G Markets
Deep Dive
Why is Meta's stock falling despite strong revenue growth?
Meta's stock fell due to weaker-than-expected daily active user growth and warnings of increased AI expenditure in 2024.
Why did Microsoft's stock decline after beating revenue expectations?
Microsoft's stock declined because its guidance for the current quarter was softer than Wall Street expectations.
Why is YouTube considered an undervalued asset within Alphabet?
YouTube generates more revenue than Netflix but is part of Alphabet, which dilutes its standalone value and market perception.
Why are tech companies like Google, Microsoft, and Meta increasing their capital expenditures?
Tech companies are ramping up capex to compete in the AI space, viewing capital as a strategic weapon to stay ahead in technology trends.
Why is legacy media struggling despite a strong economy?
Legacy media is losing ad revenue to digital platforms like YouTube and social media, which are more effective at capturing advertiser attention.
Why are podcasts becoming a significant revenue stream?
Podcasts command significant attention, especially from younger demographics, making them a lucrative platform for advertisers seeking to reach this hard-to-reach group.
Why might Vice President Harris win the upcoming election?
Harris might win due to voter fatigue from the intense political discourse of the previous administration and a desire for a less divisive presidency.
- Reddit's revenue grew 68% year-on-year.
- Daily users increased by 47%.
- AI translation of posts into multiple languages expanded the user base globally.
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