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Big tech results show investor demand for payoffs from heavy AI spending
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Guardian Middle East
Microsoft reported revenue growth in its Azure cloud-computing business that was only slightly above expectations.
In contrast, AI bolstered ad targeting at Meta, boosting revenue by 24% in the December quarter and aiding a rosy first-quarter forecast.
For Meta, the revenue growth underscored that its AI pivot was paying off and helping the company catch up to early leaders.
Its revenue rose 24% in the fourth quarter, and Meta forecast growth to accelerate as much as 33% in the current quarter.
Analysts said the results left some mismatch between corporate AI goals and investors’ demand for payoffs.