Chanticleer
Beware big tech’s AI profit gap
Amazon’s stellar earnings underscore big tech’s profit challenge: cost-cutting is done, and the payoff from AI investments are still some way off.
While investors are rightly worried about the prospect that interest rates will be stuck higher for longer – exhibit A was Tuesday night’s savage sell-off on Wall Street after wage growth data came in hotter than expected – we can thank our lucky stars that big tech’s March quarter earnings season has gone off without a hitch.
Amazon joined Microsoft, Alphabet and Meta Platforms in delivering impressive numbers for the first three months of the calendar year. The online retail and cloud computing giant tripled net income to $US10.4 billion ($16.1 billion) as its operating margin soared almost 3 per cent to a record 10.7 per cent.
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