Major tech companies, including Amazon ( AMZN ), Meta Platforms ( META ), and Alphabet ( GOOG , GOOGL ), posted strong third-quarter earnings this season. Despite strong showings, the huge expenditure (CapEx) on Artificial Intelligence (AI) is angering some investors.
Bernstein Internet Research analyst Mark Shmulik tells Yahoo Finance that Amazon “feels like the kind of name you can put money into to work and enjoy.”
Alphabet also reported a good third quarter, but Shmulik notes ongoing legal issues – especially in the antitrust arena – at Google that may hold the company back: “There's a lot of noise around the word that's really hard to break through.”
According to Meta, Shmulik also thinks that the social media giant is well placed, but that when it comes to the use of AI, “we are still waiting to see how big that money will be and what time we can expect. come back.”
Shmulik continues to explain his Underperform rating on Reddit (RDDT).
Watch the video above to hear Shmulik's take on major tech and other Internet stocks.
To view more expert insights and analysis on the latest market action, check out more Market Domination here.
This post was written by Daniel A. Nelson
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