Stock market plunges as Meta and Microsoft reignite concerns over Big Tech’s AI investments: Yahoo Finance
In a rollercoaster day for the stock market, the Nasdaq and S&P 500 took a hit as tech giants Meta and Microsoft sparked fears over Big Tech’s AI spending. Investors were left reeling as concerns mounted over the companies’ hefty investments in artificial intelligence technologies.
Shares of Meta, formerly known as Facebook, plummeted by 5% after the company announced plans to ramp up spending on AI research and development. The social media giant has been under scrutiny for its handling of user data and misinformation on its platform, leading to increased pressure to enhance its AI capabilities.
Meanwhile, Microsoft also saw its stock price drop by 3% following news of its substantial investments in AI technologies. The tech behemoth has been doubling down on AI research in recent years, with a focus on areas such as cloud computing and machine learning.
The news sent shockwaves through the tech sector, with other major players like Apple and Amazon also experiencing declines in their stock prices. Investors are now grappling with the implications of Big Tech’s continued push into AI, which could potentially drive up costs and impact profit margins.
Despite the market turbulence, analysts remain optimistic about the long-term prospects of these companies. They believe that investments in AI could ultimately pay off in the form of improved products and services, leading to sustainable growth in the future.
As the stock market continues to fluctuate, investors will be closely monitoring developments in the tech sector and the impact of Big Tech’s AI spending on their bottom lines. Stay tuned for more updates on this evolving story.