It was a bad week for Big Tech.
Google’s parent company, Alphabet, lost $500 billion in market value on Thursday following a rough third quarter earnings report.
More tech giants followed today: Meta reported a negative free cash flow, and its stock dropped, along with Microsoft and Amazon. It was Intel’s worst day on the stock market since 1974.
What struck Daniel Newman, CEO of the Futurum Group, was just how fast these companies took a turn for the worse.
“Monday, Tuesday, everyone was smiling,” he said. “Wednesday, Thursday, Friday, everybody was crying.”
Newman said that all these companies invest a lot in AI — but that wasn’t the problem. “SpaceX, Meta, Google, Amazon, Microsoft, all actually performed extremely well inside their cloud businesses,” he said, “but interestingly enough, we started to see some cracks inside other parts of the businesses.” |