Meta To Alphabet: Top AI Companies To Drive Most Third-Quarter US Earnings Gains
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Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓US corporate earnings are expected to rise about 31% in the third quarter, with Meta, Alphabet, and Amazon driving most gains.
- ✓Anthony Saglimbene said, "A lot of this AI trade is built on continued capex spending." Technology stocks helped the S&P 500 reach a record high this week as investors watch.
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US corporate earnings are expected to rise about 31% year on year in the third quarter, with technology and AI heavyweights Alphabet, Amazon.com and Meta Platforms accounting for two-thirds of the increase, according to a report in Reuters. The forecasts come as investors question how long AI-led earnings growth can continue and whether share prices can sustain their gains.
Technology stocks helped the S&P 500 reach a record high this week. The earnings season is expected to begin unofficially next week with results from JPMorgan Chase and Goldman Sachs.
AI And Energy Lead Growth
Technology and AI could account for 70% to 80% of earnings growth, said Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute. Energy earnings are forecast to rise about 115% after US oil prices surged roughly 30% in the third quarter amid the US-Israeli war with Iran. Consumer staples and real estate have some of the weakest growth estimates, Samana said, as reported by Reuters.
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