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Alphabet, Microsoft shares jump as investors cheer AI investment

Published

1 week ago

April 26, 2024

By Reuters | Updated: April 26, 2024

LONDON, April 26 (Reuters) – Microsoft and Google showed investors that heavy artificial intelligence investment can pay off with rising revenue, allaying concerns raised a day earlier by Meta, which said its expensive foray into AI was not immediately paying off.

Shares in Google-parent Alphabet were up over 11% in Frankfurt on Friday, while Microsoft shares rose nearly 5%.

That contrasts with a more than 10% slide in Meta (META.O) shares on Thursday, after the social media firm signalled its costly bet on AI could take years to pay off.

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Microsoft (MSFT.O), opens new tab beat Wall Street estimates for third-quarter revenue and profit on Thursday, driven by gains from adoption of artificial intelligence across its cloud services.

Alphabet (GOOGL.O), opens new tab announced its first-ever dividend on Thursday and a $70 billion stock buyback, after beating expectations for the quarter in sales, profit and advertising.