{"id":98623,"date":"2024-10-31T07:09:23","date_gmt":"2024-10-31T11:09:23","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=98623"},"modified":"2024-10-31T07:10:22","modified_gmt":"2024-10-31T11:10:22","slug":"ai-drives-meta-microsoft-q3-earnings","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/ai-drives-meta-microsoft-q3-earnings\/","title":{"rendered":"AI Drives Meta & Microsoft Q3 Earnings, But Stock Prices Dip"},"content":{"rendered":"\n

Meta and Microsoft's AI businesses<\/a> announced better-than-expected quarterly earnings, but muted outlooks saw\u00a0their shares down after hours.<\/p>\n\n\n\n

\"AI<\/figure>\n\n\n\n

Shares in Meta Platforms and Microsoft declined in after-hours trading on Oct. 30 despite both companies posting strong Q3 earnings, as executives gave lower earnings forecasts and outlined increased spending plans for artificial intelligence (AI).<\/p>\n\n\n\n

Meta reported a 19% year-on-year increase in Q3 revenue to $40.6 billion, surpassing Wall Street\u2019s $40.2 billion estimate. Its earnings per share (EPS) reached $6.03, above the $5.19 forecast.<\/p>\n\n\n\n

Microsoft\u2019s revenue for the quarter was up 16% from last year to $65.6 billion, exceeding estimates of $64.4 billion, with EPS at $3.30, well above the $3.08 expectation.<\/p>\n\n\n\n

The earnings come amid increased AI investments from major U.S. tech companies, including Google, Apple, and Amazon, who are developing new AI models and supporting technologies. <\/p>\n\n\n\n

This year, Meta launched \u201cMeta AI\u201d across WhatsApp, Facebook, and Instagram, prompting CEO Mark Zuckerberg to comment that the company \u201chad a good quarter driven by AI progress.\u201d<\/p>\n\n\n\n

Microsoft\u2019s results were bolstered by 33% growth in its AI-driven Azure business, which outpaced the projected 29% increase. <\/p>\n\n\n\n

CEO Satya Nadella stated, \u201cOur AI business is on track to surpass an annual revenue run-rate of $10 billion next quarter, which will make it the fastest-growing business in our history to reach this milestone.\u201d<\/p>\n\n\n\n

However, both stocks dipped following an initial rise, with Meta (META) shares \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>down 3.18% from $591.80 to $573 and Microsoft (MFST) shares<\/use><\/svg><\/span><\/a> down 3.71% from $432.53 to $416.50, according to Google Finance.<\/p>\n\n\n\n
\"\"

Meta (left) and Microsoft (right) shares both saw initial jumps after-hours before falling. Source: Google Finance<\/em><\/figcaption><\/figure>\n\n\n\n

Investors appeared cautious, as both companies hinted at continued high spending on AI with only moderate near-term gains. <\/p>\n\n\n\n

Zuckerberg noted that AI development would \u201ccontinue to require serious infrastructure\u201d and indicated that Meta\u2019s investment in the sector would remain \u201csignificant,\u201d although the final budget had not been set.<\/p>\n\n\n\n

Meta\u2019s CFO Susan Li stated the firm aimed to make Meta AI<\/a> \u201cas engaging and valuable a consumer experience as possible\u201d and added that \u201cmonetization opportunities will exist over time.\u201d <\/p>\n\n\n\n

Meta expects capital expenditures between $38 billion and $40 billion for the year, with \u201csignificant capital expenditures growth in 2025.\u201d<\/p>\n\n\n\n

Meta\u2019s shares also fell after the company missed expectations for daily active users, recording a 5% year-on-year increase to an average of 3.29 billion, just shy of the projected 3.31 billion.<\/p>\n\n\n\n

Microsoft\u2019s outlook for the current quarter estimated Azure\u2019s AI growth between 31% and 32%, slightly below the 33% from last quarter. <\/p>\n\n\n\n

It also projected revenue between $68.1 billion and $69.1 billion, under analyst estimates of $69.9 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"

Meta and Microsoft’s AI businesses announced better-than-expected quarterly earnings, but muted outlooks saw\u00a0their shares down after hours. Shares in Meta Platforms and Microsoft declined in after-hours trading on Oct. 30 despite both companies posting strong Q3 earnings, as executives gave lower earnings forecasts and outlined increased spending plans for artificial intelligence (AI). Meta reported a […]<\/p>\n","protected":false},"author":56,"featured_media":98640,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[3996,710,8149,2227,2191,1241],"class_list":["post-98623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ai","tag-business","tag-meta-2","tag-microsoft","tag-shares","tag-stocks"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/10\/AI-Drives-Meta-Microsoft-Q3-Earnings-But-Stock-Prices-Dip.webp","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/98623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/56"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=98623"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/98623\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/98640"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=98623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=98623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=98623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}