Big Tech’s earnings season has taught us 2 big lessons so far

Big Tech earnings season is in full swing, and although AI chip giant Nvidia (NVDA) won’t report its earnings until February 21, there’s already plenty of information to be gleaned. Chief among them is that AI is moving a larger part of the conversation to corporate earnings and basic business practices are still important.

So far, Alphabet (GOOG, GOOGL), Amazon (AMZN), AMD (AMD), Apple (AAPL), Intel (INTC), Meta (META), and Microsoft (MSFT) have posted largely solid reports, But not every company is seeing positive movement in its stock.

Shares of Apple and Google parent Alphabet fell after reporting disappointing sales in their China and advertising businesses, respectively, while shares of Intel and AMD suffered losses due to a worse-than-expected outlook for the current quarter.

Amazon, Meta and Microsoft, meanwhile, are flying high thanks to big moves in their most important business areas, including consumer sales, advertising and cloud.

And although it may not seem like it, there are some common threads running through the stock market’s reaction to these earnings reports. From AI investments to advertising and regional sales, Big Tech’s latest earnings offer some valuable lessons.

AI is still king

If you need more proof that Wall Street’s obsession with AI is still strong, take a look at how many companies talked about the technology during their earnings calls. Microsoft said its AI offerings drove 6% revenue growth in its Azure cloud business, up from 3% contribution last quarter and 1% in the quarter before that. This may not seem like a huge amount, but it allows Microsoft to make clear that its AI moves are starting to pay off.

UBS analyst Carl Keirstead wrote in an investor note after the company…

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