Big Tech’s Ability to Deliver on AI Profits Looms Over S&P 500
source link: https://finance.yahoo.com/news/big-tech-ability-deliver-ai-150000601.html
Go to the source link to view the article. You can view the picture content, updated content and better typesetting reading experience. If the link is broken, please click the button below to view the snapshot at that time.
Big Tech’s Ability to Deliver on AI Profits Looms Over S&P 500
Big Tech’s Ability to Deliver on AI Profits Looms Over S&P 500
(Bloomberg) -- The fate of the S&P 500 is increasingly resting on whether a handful of the biggest technology companies can parlay artificial intelligence investments into even higher profits.
Most Read from Bloomberg
Seven firms including Microsoft Corp. and Nvidia Corp. have driven about three-quarters of the index’s gain this year, in a rally stoked by an investor obsession with AI’s potential to disrupt vast parts of the economy. Valuations are high, with the companies’ shares trading at an average of about 32 times earnings. Pressure is mounting on companies to deliver on some of the earnings hope embedded in their ever-rising stock prices.
“We’re getting closer to the moment when the companies that are claiming AI-related profits will have to start showing them,” said Mark Lehmann, chief executive at Citizens JMP Securities. “I am not calling for an expansion of multiples next year; the returns will have to come from companies actually turning in better profits.”
The companies just delivered record profits of $99 billion in the third quarter. Now more is being asked of them, testament to how high the stakes have become for the stocks that have added around $5 trillion to the market’s value this year. At nearly 30% of the S&P 500, they have more sway over the benchmark than ever before.
The Nasdaq 100 Index was little changed on Monday.
Nvidia Corp. has been the engine powering much of the group’s profit growth this year. It’s the only megacap that has delivered a significant jump in results as a result of demand for AI. The chipmaker is projected to generate about $28 billion in profit this year, up from about $4.4 billion last year. Most of the gains stem from sales of so-called accelerator chips used to train the large-language models that underpin applications like ChatGPT.
ZacksIs the Options Market Predicting a Spike in Hasbro (HAS) Stock?
Investors need to pay close attention to Hasbro (HAS) stock based on the movements in the options market lately.
1d ago
ZacksShould You Add These 3 Top-Performing Mutual Funds to Your Portfolio?
These three top-ranked, best-performing and well-managed funds can help you maximize your retirement portfolio returns.
1d ago
BloombergRetail Trading App Webull Hires Cboe’s Ex-Derivatives Leader Arianne Adams
(Bloomberg) -- Arianne Adams, former head of derivatives at Cboe Global Markets Inc., is joining retail investing platform Webull Financial LLC as the firm seeks to capitalize on growing appetite for trading options. Most Read from BloombergAbu Dhabi Is the World’s Newest Wealth Haven for BillionairesJack Ma’s Biggest E-Commerce Rival Is Coming for AmazonWall Street Holds Back on Big Bets Before CPI Test: Markets WrapBitcoin’s Largest Decline in Four Months Frays Startling RallyHarvard’s Deepeni
1d ago
BloombergMusk Restores Alex Jones’s X Account After Vote From Users
(Bloomberg) -- Elon Musk restored the account of right-wing conspiracy theorist Alex Jones on X after users voted for the reinstatement five years after a ban.Most Read from BloombergJPMorgan Is in a Fight Over Its Client’s Lost $50 Million FortuneGoldman Trader Who Was Paid $100 Million Since 2020 to Step DownRaimondo Vows ‘Strongest Possible’ Action on Huawei’s Chip BreakthroughAbu Dhabi Is the World’s Newest Wealth Haven for BillionairesHarvard’s Deepening Disunity Pits Alumni Against Faculty
2d ago
Barrons.comStocks Open Mixed to Begin a Busy Week
The major stock indexes are mixed Monday as the market takes a breather from recent gains. The Dow Jones Industrial Average is up 67 points, or 0.2%, while the S&P 500 and Nasdaq Composite are down 0.1% and 0.5%, respectively. This comes after a Friday rally, a continuation of what has a been a 20% gain for the S&P 500 this year.
1d ago
TechCrunchAfter year-long search, Strava appoints YouTube exec Michael Martin as new CEO
Strava has finally announced who its next CEO will be, almost a year after confirming that co-founder Michael Horvath was leaving the hotseat for a second time. Michael Martin will start his new role at Strava on January 2, 2024, leaving his current role as general manager at YouTube's shopping unit. Martin previously served in technology roles at Nike, NBCUniversal Media and Disney.
1d ago
BloombergTikTok to Spend $1.5 Billion Taking Over GoTo’s Indonesia Shop
(Bloomberg) -- ByteDance Ltd.’s TikTok agreed to invest $1.5 billion in a joint venture with Indonesia’s GoTo Group that it will control, part of a pact that lets the Chinese company restart its shopping app in its biggest online-retail market.Most Read from BloombergJPMorgan Is in a Fight Over Its Client’s Lost $50 Million FortuneGoldman Trader Who Was Paid $100 Million Since 2020 to Step DownRaimondo Vows ‘Strongest Possible’ Action on Huawei’s Chip BreakthroughAbu Dhabi Is the World’s Newest
1d ago
ZacksWall Street Bulls Look Optimistic About Celsius Holdings Inc. (CELH): Should You Buy?
According to the average brokerage recommendation (ABR), one should invest in Celsius Holdings Inc. (CELH). It is debatable whether this highly sought-after metric is effective because Wall Street analysts' recommendations tend to be overly optimistic. Would it be worth investing in the stock?
1d ago
ReutersInstitutional investors lag retail peers in ETF adoption: Cerulli
Institutional investors lag their retail peers in adoption and use of exchange-traded funds (ETFs), according to a report by research firm Cerulli Associates. These institutional investors, like endowments or state and local defined benefit plans, own nearly $1.3 trillion in ETF assets – making up just 4.2% of the ETF segment's $31 trillion in U.S. professionally managed assets, the report released on Thursday added. ETF issuers told Cerulli more than 80% of industry ETF assets come from retail rather than institutional clients.
1d ago
ZacksThe Zacks Analyst Blog Highlights Cboe Global Markets, NVIDIA and Block
Cboe Global Markets, NVIDIA and Block are part of the Zacks top Analyst Blog.
1d ago
ReutersMarketmind: Running the central bank gauntlet
The final sweep of major central banks meetings of 2023 this week is unlikely to involve any change of policy rates but may act as a reality check for markets' prevailing rate cut euphoria. And before we even get to the Federal Reserve's latest decision on Wednesday, there's a lot to digest. With Friday's surprisingly robust U.S. employment report for November cutting across other softer labor market indicators and still reverberating on Monday, the picture was colored by news of deepening deflation in China and reports of a pushback against recent speculation about imminent Bank of Japan tightening.
1d ago
BloombergPrivate Credit Is Attracting Record Number of Japanese Investors
(Bloomberg) -- A record number of Japanese investors are putting their money into domestic private credit deals in search of higher returns in the world’s last major holdout for negative interest rates. Most Read from BloombergJPMorgan Is in a Fight Over Its Client’s Lost $50 Million FortuneRaimondo Vows ‘Strongest Possible’ Action on Huawei’s Chip BreakthroughAbu Dhabi Is the World’s Newest Wealth Haven for BillionairesHarvard’s Deepening Disunity Pits Alumni Against FacultyJack Ma’s Biggest E-
18h ago
BloombergZelenskiy In Washington to Rally US in Crucial Week for Alliance
(Bloomberg) -- Ukraine President Volodymyr Zelenskiy urged the US to break a deadlock over more than $60 billion in military aid, warning on a visit to Washington that the funding fight only benefits President Vladimir Putin and risks his country’s ability to push back against Russian forces.Most Read from BloombergJPMorgan Is in a Fight Over Its Client’s Lost $50 Million FortuneRaimondo Vows ‘Strongest Possible’ Action on Huawei’s Chip BreakthroughAbu Dhabi Is the World’s Newest Wealth Haven fo
18h ago
ZacksPayPal Holdings, Inc. (PYPL) Is a Trending Stock: Facts to Know Before Betting on It
Recently, Zacks.com users have been paying close attention to Paypal (PYPL). This makes it worthwhile to examine what the stock has in store.
1d ago
ReutersAirlines urge Brazil, Petrobras to lower jet fuel prices
Airline lobby group IATA has urged the Brazilian government and state-run oil company Petrobras to tweak the way jet fuel is charged in the country in order to reduce costs, calling kerosene prices in the South American nation "excessively high." The International Air Transport Association (IATA) said in a statement on Monday that local prices "do not reflect the reality of an oil producing country," adding that fuel costs were one of the main challenges faced by the sector in Brazil. Petrobras is Brazil's largest oil producer and responsible for most of the country's refining activity.
1d ago
BloombergSyensqo Spinoff Starts Trading at Almost €10 Billion Value
(Bloomberg) -- Syensqo SA, a chemicals maker carved out from Solvay SA, began trading Monday with an equity value just shy of €10 billion ($10.8 billion), in one of the largest spinoffs in Europe this year. Most Read from BloombergAbu Dhabi Is the World’s Newest Wealth Haven for BillionairesBitcoin’s Largest Decline in Four Months Frays Startling RallyJack Ma’s Biggest E-Commerce Rival Is Coming for AmazonWall Street Holds Back on Big Bets Before CPI Test: Markets WrapA Record High Is in the Car
1d ago
Associated Press FinanceEpic Games wins antitrust lawsuit against Google over barriers to its Android app store
A federal court jury has decided that Google’s Android app store has been protected by anticompetitive barriers that have damaged smartphone consumers and software developers, dealing a blow to a major pillar of a technology empire. The unanimous verdict reached Monday came after just three hours of deliberation following a four-week trial revolving around a lucrative payment system within Google’s Play Store. The store is the main place where hundreds of millions of people around the world download and install apps that work on smartphones powered by Google’s Android software.
1d ago
Recommend
-
8
In Despairing Times, a Dark Cloud Looms Over MLBThe league’s inability to get a deal done propounds a bad look for the sportMLB is currently undergoing its fourth lockout in history, and eighth work stoppage o...
-
10
Comment Big Tech’s hedonistic get-rich party is over, and Gen Z knows it Today's graduates have discovered the secret to job satisfaction
-
7
Ukraine-Russia: Hidden tech war as Slovyansk battle loomsBy Jonathan Bealenear Slovyansk, UkrainePublished17 hours ago
-
8
Big Tech Can’t Stop Obsessing Over Apple and TikTokEarnings season was dominated by two companies—both existential threats to their competition.
-
11
A Recession Looms Over the Posh World of InfluencersWith energy prices soaring and inflation taking off, the business of flaunting luxury might stop booming.
-
5
Green tech boom looms but poor nations risk being eclipsed: UN by Robin MILLARD...
-
4
Big Tech crackdown looms as EU, UK ready new rules by Kelvin Chan...
-
5
Tories struggle to deliver on Britain’s big tech dreams Gap between the Government’s tech rhetoric and reality is becoming...
-
4
Plex hit with layoffs as ad-supported streaming service fails to deliver profits for media server company
-
8
Investors Expect Big Profits On Golden Inu (ERC-20) As CoinMarketCap & CoinGecko Add It To Coin Listings August 8, 2023
About Joyk
Aggregate valuable and interesting links.
Joyk means Joy of geeK