Earnings season officially begins Come on, everyone!
Microsoft and Alphabet will report their third quarter results after the bell today, and Meta and Amazon are expected to report later this week. And we can’t wait to see if these companies report significant improvements from their investments in AI-related computing tasks and products.
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When asked a similar question before Q2 2023 earnings announcements, we found that while AI-related costs are piling up, the resulting revenue is more of a future than a present fact. Will a similar theme appear this time as well?
As you know, there’s a big difference between customers being excited about a new technology and technology that actually brings in huge revenue. We want to see how quickly some of the largest and wealthiest technology companies can turn this market interest in AI into revenue.
Big Tech’s ability to sell AI-powered tools and services clearly shows how much money the technology buying market is prepared to spend on new software. So for startups, Microsoft and Alphabet’s strong results in the AI space will be great news. On the other hand, another quarter of Big Tech companies, which spend a lot of money on infrastructure along with discussions about future revenue, would be less bullish.