Trading is quieter among AI shares after previous day's slump
SPY•Major AI stocks were mixed Friday after the Nasdaq's biggest decline in four months on Thursday. The Nasdaq was barely changed, while Microsoft, Alphabet and Amazon were due to report earnings the following week.
1. AI shares mixed
Meta Platforms was fractionally lower after falling 7% on Thursday. SpaceX, Oracle and Dell Technologies rose 1% to 2%, while Nvidia, Alphabet and Amazon slipped less than 1%; major semiconductor stocks were mostly higher.
2. Spending concerns persist
Investors are weighing the cost of AI investment and its potential returns. Meta said this week it would create a new class of shares in part to fund further capital spending, while credit-default swap premiums for major AI companies have risen over the past year as investors have grown concerned about risks tied to heavy spending.
3. Earnings ahead
Alphabet, Amazon and Microsoft were expected to report earnings the following week, and Anthropic was expected to publish its IPO prospectus in coming days. Investors remain focused on whether strong AI revenue growth can be sustained and at what cost.
