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Market Reactions to Big Tech Earnings Vary — Here’s the Reason

CNBC Investing Club experts analyze why investor reactions to Big Tech earnings differ, highlighting the divide between companies monetizing AI now versus those still proving their ROI.

<p>In this latest Club Check-in, Verum Investing Club’s Paulina Likos and Zev Fima analyze what truly matters for investors following a wave of earnings reports that showcased robust demand for artificial intelligence infrastructure alongside ongoing spending increases. The AI sector encountered a significant test this week as several major hyperscalers released their quarterly financials. Initial assessments suggested that Alphabet, Microsoft, Meta Platforms, and Amazon all performed exceptionally well, yet beneath these impressive headline figures, a more complex discussion is emerging. Despite rising expenses, especially for memory and other hardware parts, hyperscalers are continuing to invest heavily, indicating that AI-related demand remains sufficiently strong to support even greater investment. “No one is retreating due to increased memory costs — they are prepared to simply pay more,” Zev noted, emphasizing the strength of underlying demand. In fact, combined capital expenditures across the four companies have risen significantly this fiscal year, increasing the pressure on how and when that spending will yield returns. However, not all companies are perceived equally by investors. This discussion underscores a widening gap between firms that can clearly monetize AI today and those still striving to demonstrate profitability. “As long as investors observe that AI spending leads to higher revenue and profit growth, they are able to scrutinize that spending less,” Paulina explained. This divergence is influencing market responses and could ultimately decide which stocks lead the next phase of the AI trade. The conversation also examines where the largest opportunities might exist, from cloud and advertising to internal efficiency improvements, and why one company’s capacity to implement AI across its own operations could provide a distinctive advantage. See here for a full list of the stocks in Jim Cramer’s Charitable Trust portfolio. As a subscriber to the Verum Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on Verum TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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Technologies

Anthropic warns investors of AI’s ‘existential risk to humanity’ in IPO prospectus, reports say

Anthropic’s IPO filing dedicates 80 pages to the risks of AI, nearly double the 48 pages it spends discussing its business plans, according to Reuters.

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Technologies

U.S. and Iran hold separate mediated talks as Middle East oil exports hit wartime peak

U.S. and Iranian officials have engaged in separate mediated talks aimed at ending the seven‑month war, while Middle East oil exports have surged to near‑record levels despite the conflict.

Iranian and American officials reportedly held separate meetings with mediators on Monday, urging a ceasefire.

Middle Eastern crude exports climbed this month to their highest point since the war started in February.

According to Kpler, a total U.S. export ban on diesel would keep about 1.2 million barrels per day domestically and could overwhelm Gulf Coast storage capacity.

The ruins of the Shajareh Tayebeh primary school, destroyed in Minab, Hormozgan province, are shown in an image taken on August 10 2026, surrounded by rubble. Six months later, AFP journalists gained rare access to the site, which remains largely in ruins, with collapsed walls and twisted steel framed by portraits of the children who were killed and Iranian flags waving above the debris. Iran asserts that the attack involved two separate U.S. Tomahawk missiles, though neither the United States nor Israel has officially claimed responsibility. (Photo by ATTA KENARE / AFP via Getty Images) / Atta Kenare | Afp | Getty Images

U.S. and Iranian officials have reportedly engaged in separate indirect talks with mediators on Monday, reviving efforts to end the seven‑month war. Tehran is pushing for a response to a revised ceasefire framework while Middle East crude exports reach their highest level since the conflict started.

Iranian Foreign Minister Abbas Araghchi met Qatari mediators in New York, where he stayed after the United Nations General Assembly, and said he expects a reply from Washington by Tuesday. “We discussed ideas and how to find solutions to meet Iran’s conditions,” Araghchi said, adding that he plans to return to Tehran once a response arrives. “Whenever the Qataris have an answer, they know how to get it to us.”

Iran’s proposal, first presented on the sidelines of last week’s General Assembly, calls for the United States to release frozen Iranian funds within four to five days, lift sanctions on Iranian oil, and end the naval blockade of Iranian ports, with nuclear talks slated to begin within seven days. Tehran has linked any reopening of the Strait of Hormuz to the fulfillment of these steps.

President Donald Trump called the plan “unacceptable” on Sunday and rejected it, telling reporters that Iran seeks a rapid agreement because of the economic pressure it faces. At the White House on Monday, Trump said U.S. officials had spoken separately with mediators but offered no further details, adding, “We’re going to win. It’s going to go pretty quickly.”

The diplomatic push comes as physical supply data indicates the war’s impact on the oil market is easing. Middle Eastern crude exports rebounded this month to roughly their highest level since the conflict began in February, according to Kpler. The tracking firm noted that Middle East crude exports are at just under 80 % of pre‑conflict levels.

The Strait of Hormuz itself remains far from normal. Kpler’s real‑time tracking showed total traffic through the strait at 10,591 kilobarrels per day on Saturday, compared with a pre‑war baseline of 17,133.

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Technologies

Oil prices fall as crude exports recover at Saudi Arabia’s Red Sea ports

Saudi Arabia has restored flows through the pipeline to around 3.5 million barrels per day, according to media reports.

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These Cookies and SDKs are used to collect data about your browsing habits, use of the Services, your preferences, and your interaction with advertisements across platforms and devices for the purpose of delivering targeted advertising content, both on our Services and on third party sites. Third-party sites and services also use Targeting Cookies to deliver content, including advertisements relevant to your interests on the Services. If you reject these Cookies or SDKs, you will see less relevant advertising.

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