"Tech Giants' Financial Reports Show 'Mixed Results'! Market 'Judges' AI Investment Returns Strictly"

Last week, the stock performance of technology giants showed significant differentiation after their financial reports, as Wall Street sought clear signals of return on investment in artificial intelligence to determine market leaders, the clear winners and losers have emerged. Shares of Meta (META.US) soared more than 10% in a single day, as investors welcomed its productivity improvements and the comprehensive integration of AI technology into social media applications, advertising and shopping tools, and internal workflows. Meanwhile, Tesla, Inc. (TSLA.US) saw a rebound in its stock price after selling off on Friday, as investors digest Elon Musk's emphasis on the company's transition from an electric car manufacturer to the autonomous driving and Siasun Robot & Automation fields, as well as the announced large-scale expenditure forecasts. However, technology giant Microsoft Corporation (MSFT.US) saw a sharp decline in its stock price after announcing its performance, as the market worried about its slowing cloud business growth and significant expenses related to AI. The stock prices of cloud software leaders Salesforce, Inc. (CRM.US) and ServiceNow (NOW.US) also plummeted due to market concerns that AI may impact the software-as-a-service model. "At the end of the day, it's about monetization. That's what the market wants to see now," said Dan Ives, Managing Director and Global Technology Research Director at Wedbush Securities on Friday. "I think what you're seeing is a real divergence in tech stocks. It's a bit like 'haves versus have-nots,' and that's a true reflection of the entire tech earnings season," he added. In recent quarters, the market has been cautious about an AI bubble, hoping that the billions of dollars invested in AI technology by companies will show returns in their performance. "Investors are voting with their feet, they are moving into areas where growth is more visible and feels more sustainable," said Alex Zukin, Managing Director and Software Research Director at Wolfe Research. However, Wall Street believes that the recent sell-off in software stocks is somewhat excessive and points out that the benefits of AI will take longer to materialize. "Enterprise applications involve many complex factors such as data, governance, security, compliance, risk, and we believe that some of these trends and themes may take longer to fully materialize," he added, "We are still in the adopti...