Meta Platforms and Amazon.com collectively gained $280 billion in stock market value after impressive quarterly results, with Meta’s stock surging over 14% to a record high. The social media giant, now valued at $1.16 trillion, declared its first-ever dividend following a robust 25% increase in revenue to $40.1 billion for the December quarter.
Amazon’s stock rose 8%, reaching a market capitalization of $1.78 trillion, surpassing expectations due to strong online spending during the holiday season. Meanwhile, Apple’s value contracted by $70 billion, with its stock dipping 3.3% as quarterly results beat estimates but Chinese sales fell short.
Investor enthusiasm for generative AI propelled last year’s rallies in major U.S. tech companies. Microsoft overtook Apple as the world’s most valuable company in January, reflecting a perception that Apple lags in the AI race. Apple CEO Tim Cook hinted at exciting developments in generative AI later this year.
Analysts unanimously foresee Microsoft’s lead over Apple in stock market value growing over the next five years due to its early AI advantage. Apple’s potential for growth relies on new products like the Vision Pro mixed-reality headset, set to launch in the U.S.
Meta’s post-results report indicated a 2024 capital expenditure increase to $30-37 billion, emphasizing investments in servers for AI. Chipmakers Nvidia and Advanced Micro Devices, along with server maker Super Micro Computer, also saw gains in extended trade.
