Amazon, Alphabet, and Meta saw significant share price rallies in 2024 thanks to strong performance and investments in digital advertising and AI

From Nasdaq: 2024-07-16 04:20:00

In the first half of 2024, tech giants Amazon, Alphabet, and Meta saw significant share price rallies, increasing by 27.2%, 30.4%, and 42.5% respectively, driven by strong performance in the digital advertising sector and investments in new generative AI technology. All three companies posted impressive growth after implementing cost-cutting measures and restructuring.

Amazon, Alphabet, and Meta each experienced a slowdown in 2022 and early 2023, leading to cost reductions and operational changes. As economic conditions improved, all three companies reported increased revenue, profit margins, and operating cash flow, with Amazon seeing a surge in free cash flow to over $50 billion.

Alphabet and Meta both announced their first-ever dividends and exceeded analyst expectations for revenue and profits in Q4 2023 and Q1 2024. Although both companies experienced fluctuations in stock price following earnings reports, investors responded positively overall to the growth in ad sales and AI investments.

All three companies made advancements in generative AI technology during the first half of 2024. Amazon completed a $4 billion investment in Anthropic, Alphabet rolled out its Gemini large language model, and Meta showcased its Llama family of large language models. The focus on AI innovation aims to strengthen the companies’ competitive positions in the industry.

Investors and analysts are closely monitoring the progress of Amazon, Alphabet, and Meta in the digital advertising and AI sectors. With positive growth trends, new investments, and increased profitability, these tech giants are positioned for continued success in the market.



Read more at Nasdaq: Why Amazon, Alphabet, and Meta Platforms Rallied Between 27% and 43% in the First Half of 2024