Microsoft and Amazon's stocks rose after earnings because their AI investments are already generating returns, while Meta and Apple fell despite solid results due to heavy AI spending with no payoff yet. Milligan expects this split between AI winners and spenders to keep widening.
So the split screen here, Microsoft and Amazon are hyperscalers who beat and are being rewarded. Meta and Apple both delivered good numbers and both traded down. Meta for its $130 to $145 billion of CapEx guidance. Apple for a miss and guidance walkdown. The, the audience takeaway for you is the same I gave you Yesterday and some other shows this week. The market is separating AI winners, winners from AI spenders, one earnings call at a time. And every one of these companies is spending eye-watering amounts of capital. Only some are being paid for it yet. And we're going to see how that story plays out next quarter and the quarter after that.
How to evaluate AI growth stocks (Nvidia, Oracle, CoreWeave) beyond market hype
How to evaluate AI growth stocks (Nvidia, Oracle, CoreWeave) beyond market hype
