Last week marked a significant wave of tech earnings, with five of the "Magnificent 7" reporting: Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), Meta (META), and Microsoft (MSFT).
All five companies have been actively lobbying on artificial intelligence (AI) issues, with efforts as recent as last week. Microsoft has focused on “AI adoption,” while Apple has emphasized “artificial intelligence and safety.” Apple's lobbying is particularly noteworthy given the recent release of its own AI platform, “Apple AI,” which adds incentive to court Congressional support.
This flurry of tech lobbying aligns with broader trends in the industry. Last week CNBC highlighted recent lobbying efforts by Sam Altman, noting lawmakers are embracing the technology more than others like social media. This raises the question: Are other tech companies achieving similar regulatory influence, and with the same success as Altman?
In earnings reports, Alphabet (GOOGL) exceeded expectations with earnings of $2.12 per share versus the $1.85 forecast and revenue of $88.27 billion, topping the anticipated $86.30 billion. Microsoft (MSFT) also beat expectations, reporting $2.95 per share against the $2.93 expected and $64.73 billion in revenue, slightly above the forecast of $64.39 billion. However, Microsoft's stock dipped post-earnings due to disappointing cloud performance. Meta (META) posted earnings of $6.03 per share versus an expected $5.25, alongside $40.59 billion in revenue, which exceeded the $40.29 billion forecast. Nonetheless, Meta’s user growth fell short of expectations, although CEO Mark Zuckerberg highlighted AI investments in driving their ad business.
Later in the week, Amazon (AMZN) and Apple (AAPL) reported earnings. Amazon closed nearly 6% in the green following an earnings beat, while Apple surpassed expectations for both revenue and earnings per share but ended the week slightly in the red due to a decline in net income.
Overall, the earnings results are largely positive. It will be interesting to see if these stocks maintain their upward momentum, potentially indicating whether these firms are benefiting financially from their AI-related lobbying efforts. As advancements like “Apple AI” continue to roll out, the financial outlook for the next quarter could be even more promising for these companies.
