AI a ‘great buzzword’ to jump stock price up: Portfolio manager
Tech stocks (XLK) provided a boost to the overall markets, with the S&P 500 ending the week nearly one percent higher.
Meta (META) shares soared on an earnings beat, posting revenue of $28.65 billion versus an estimated $27.67 billion and earnings per share of $2.20 versus $2.01 estimated. Alphabet (GOOGL) ending the week up after announcing a $70 billion share buyback and beating on the top and bottom line. Microsoft (MSFT) reported an earnings beat, the stock up on better-than-expected guidance.
Daniel Morgan, Synovus Trust Senior Portfolio Manager, said Microsoft is a winner this week. Morgan joined Yahoo Finance’s Julie Hyman and Diane King Hall to recap major tech earnings to discuss the impact of AI on big tech’s stock prices. “The best thing you can do as a CEO to jumpstart your stock is talk about AI…My biggest concern is how can AI trickle down and actually affect the bottom line and grow profits into the future? Or is it just going to create more efficiencies and productivity within the existing products?”
Watch the full interview here.
Key video moments
00:00:02 On mentioning AI
00:00:10 On who is winning in AI race
00:00:42 On biggest AI concern
Video Transcript
DANIEL MORGAN: Well, the best thing you can do as a CEO to jump-- jump start your stock is talk about AI, correct? I think right now-- you know, this sounds kinda redundant. But I believe Microsoft kinda has a leg up in that space. We know that when Alphabet, you know, came out in February with their Bard, which is their competing chat bot, it was not really that well received. You look at a company like Apple that's gonna report next Thursday, a lot of their stuff is focused on the phone.
So each one kinda has their own initiatives. Meta was one of the first ones to get into AI. And they have a lot of papers that they've had published on it. But they have kinda looked beyond as kinda falling behind some of these other players. So-- but they're all talking about it. They're all jumping up.
My biggest concern is how can AI trickle down and actually affect the bottom line and grow profits into the future? Or is it just gonna create more efficiencies and productivity within the existing products? So that's my biggest question, guys, is, OK, you've got an AI product. How are you gonna make money on it? How's it gonna help out going forward? So that's what we have to wait and see. But right now, it's a great buzz word to jump your stock price up.
-Yeah.
