Tech Giants Invest Heavily in AI Development

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Alphabet reported a significant quarterly performance on October 31, 2025, with a 15% increase in revenue from search and 13% growth in its cloud business, leading to a 5% rise in its stock. Notably, the cloud division’s profit margin surged from 17% to 24% over the year, reflecting improved profitability.

Amazon’s earnings report revealed a 10% stock increase, buoyed by 20% growth in Amazon Web Services (AWS). The firm reported revenue growth of 24% in ad sales and a 10% increase in retail sales, indicating robust performance across its sectors. Analysts are optimistic about Amazon’s growth trajectory, particularly in the cloud market.

In contrast, Meta faced scrutiny as its spending on AI raised questions about return on investment amidst a lackluster quarterly performance, leading to investor concerns. The firm reported a 10% increase in average ad pricing and a 26% revenue growth, but uncertainties linger regarding the sustainability of its AI spending strategy.

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