AI is the dominant storyline — make that only storyline — as two of Big Tech’s biggest players prepare to announce quarterly results next week.
While Alphabet Inc.’s GOOGL GOOG Google reportedly races to develop a new search engine powered by AI, Meta Platforms Inc. META is changing its sales pitch to advertisers from a focus on the metaverse to artificial intelligence to drum up short-term revenue. Meta is expected to make an announcement around its plans next month.
Google, by comparison, is expected to haul in $71.5 billion in 2023, up 2.9% from $69.5 billion in 2022. Ad sales are expected to increase 6.2% to $75.92 billion in 2024. Like Meta, Google is rumored to be planning more layoffs soon. “AI is the most profound technology we are working on today,” Alphabet Chief Executive Sundar Pichai said during the company’s last earnings call in January, according to a transcript provided by AlphaSense/Sentieo.Google’s AI pivot is primarily motivated by the potential loss of Samsung Electronics Co. 005930 as a default-search-engine customer to rival Microsoft Corp.’s MSFT Bing.
Cowen analyst John Blackledge says a first-quarter call with digital ad experts this month suggests continued pricing weakness for Meta, with Google in better shape on the strength of its dominant search engine. He expects Meta to report ad revenue of $27.3 billion for the quarter, up 1% from the year-ago quarter and up 4.2% from the previous quarter. Snap, which is forecast to report a revenue drop of 6% when it reports next week, recently launched an AI chatbot as well.
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: CNBC - 🏆 12. / 72 Read more »