META Sep 2024 395.000 call
- Yahoo Finance Video
Mag 7 growth will decelerate, broaden to S&P 493: BofA Chart
The Magnificent Seven — the grouping of tech stocks Meta Platforms (META), Microsoft (MSFT), Alphabet (GOOGL, GOOG), Amazon (AMZN), Apple (AAPL), Nvidia (NVDA), Tesla (TSLA) — has been a tremendous growth driver for the S&P 500 (^GSPC), particularly in 2024. But is it about time for this growth trend to broaden out to other corners of the market? Yahoo Finance anchor Madison Mills dissects Bank of America's forecast of where it sees growth drivers reaching the other 493 names in the S&P a year from now. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Luke Carberry Mogan.
- Yahoo Finance Video
This factor will set apart competing gen AI tools: Analyst
Nvidia's (NVDA) latest earnings highlighted a major issue for the AI trade; despite beating earnings expectations, investors were disappointed as they looked for significant returns on massive capital expenditures (CapEx). RBC Capital Markets Internet Analyst Brad Erickson joins Asking for a Trend to break down the state of the AI trade and the technology's outlook amid a heated competition. Erickson explains that generative AI platforms are emerging "right in front of us," pointing to software engineering efficiencies, customer support platforms, and marketing tools as examples. He also highlights sovereign AI, where countries are spending on the technology to use and access data that no one else has. He adds, "If you look at like the top four or five CapEx spenders on AI infrastructure, it's $200 billion and it's going up next year probably by more than 10%." He explains that investors are in a position where they have to put "blind faith" into AI players, knowing that it will pay off in the future. He tells Yahoo Finance, "From my perspective, like we're taking a little bit more of a measured approach, saying, 'Look, $200 billion. Think about what you need to do to maintain operating margins.' Pretty simple math of, like, are we really talking about $300, $400 billion of marginal revenue every single year? Those are big numbers." Erickson believes that competing AI tools from names like Google (GOOG, GOOGL) and OpenAI will ultimately "end up looking a lot of the same kind of thing." He argues that distribution is a more important factor and will likely determine the level of success. For more expert insight and the latest market action, click here to watch this full episode of Asking for a Trend. This post was written by Melanie Riehl
- Reuters
Meta to start using public posts on Facebook, Instagram in UK to train AI
The company will use public posts including photos, captions and comments to train its generative artificial intelligence models, it said on Friday, adding that the training content will not include private messages or information from accounts of users under the age of 18. The update follows Meta's decision in mid-June to pause the launch of its AI models in Europe after the Irish privacy regulator told the company to delay its plan to harness data from social media posts. The company had then said the delay would also allow it to address requests from Britain's Information Commissioner's Office (ICO).
