Jim Cramer took to social media on Thursday to address what he perceives as misleading headlines regarding AI losses. Cramer emphasized that hyperscalers are not signaling worsening AI losses but are instead thriving with AI advancements.
What Happened: Microsoft Corp MSFT and Meta Platforms Inc.META witnessed their stocks plummet during after-hours on Wednesday after reporting their earnings.
At the time of writing, Microsoft was down by 3.95% in premarket, while Meta shed 2.69%.
Cramer criticized the lack of rigor in some reports, urging readers to delve into the actual earnings calls and analyses. He stated, “The Hyperscalers are NOT warning about worsening AI losses, they are talking about crushing it with AI.”
He encouraged his followers to read the calls and his team’s write-ups for a clearer understanding.
Why It Matters: Cramer’s comments echo analyst Zev Fima‘s who increased the price target for Meta to $650 per share, despite a decline in the company’s stock during after-hours trading. Fima highlighted the robust third-quarter results, with revenue guidance for the current quarter surpassing expectations.
Microsoft recently announced that its AI business is poised to reach a $10 billion revenue milestone, marking it as the fastest-growing segment in the company’s history. CEO Satya Nadella emphasized the transformative impact of AI across various business processes.
Similarly, Meta is advancing its AI capabilities with its Llama 4 model, leveraging an extensive computing infrastructure. CEO Mark Zuckerberg noted the significant scale of their AI training efforts, which are expected to yield results by early 2025.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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