Major tech companies, including Amazon (AMZN), Meta Platforms (META), and Alphabet (GOOG, GOOGL), posted solid third-quarter earnings this season. Despite strong results, capital expenditures (CapEx) for artificial intelligence (AI) are scaring some investors.
Bernstein internet equity research analyst Mark Shmulik tells Yahoo Finance that Amazon “feels like a name you can put money into and get excited about.”
Alphabet also reported a positive third quarter, but Shmulik points to ongoing legal issues – especially in antitrust – for Google that could hold the company back: “There's just a lot of buzz around the name that's very difficult to break. “
As for Meta, Shmulik also thinks the social media giant is well positioned, but that when it comes to AI spending, “we are still waiting to see how big that spending will be and over what period we can expect the growth.” yield.”
Shmulik then explains his Underpeform rating on Reddit (RDDT).
Watch the video above to hear Shmulik's take on major tech and other internet stocks.
To see more expert insights and analysis on the latest market action, check out more Market Dominance here.
This post was written by Daniel A. Nelson
