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Tech giants’ results show rosy outlook for AI boom and US stock market

about 7 hours ago
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Unusual simultaneous reports of financial results by several of the US’s largest tech companies gave positive indications for the stock market despite widespread fears of an AI bubble on Wednesday.Four of the so-called Magnificent Seven tech stocks, the most valuable publicly traded companies in the world, reported their quarterly financial results on Wednesday.The cluster is not typical, as these disclosures do not often occur on the same day, and provides a snapshot of how the tech industry is faring as it rides the AI boom.Amazon, Alphabet and Microsoft all revealed double-digit gains in their cloud computing units, which have seen supercharged growth thanks to increasing adoption of AI.Meta, not in the business of cloud computing, failed to meet Wall Street expectations.

Wall Street investors are closely watching the results as these tech companies lead the way on enormous spending on AI infrastructure such as datacenters.The four companies have together planned to spend $650bn in 2026 on AI infrastructure.Investors and economists anticipate that poor results could throw the market into turmoil, and will be scrutinizing capital expenditure projections.Both Alphabet and Meta revised their projections upward; the former’s revenue gains seemed to offset investors’ worries.The combined Mag-7 stocks make up over 30% of the S&P 500’s market capitalization.

The tech industry’s embrace of AI is also coinciding with widespread layoffs, which companies have either implicitly or explicitly linked to the technology.Meta and Microsoft announced large-scale reductions in staff earlier this month, with Meta saying the cuts would help it “offset the other investments we’re making”.More than 92,000 tech employees have been laid off globally so far this year, according to the tracking site Layoffs.fyi.Wednesday’s results mollified some investor concerns surrounding the health of the tech industry, as the four companies largely outperformed Wall Street expectations regarding revenue and earnings per share.

Meta’s announcement that it would once again increase its capital expenditures from $115bn minimum to $125bn drew alarm, however, causing its stock price to fall over 5% in after-hours trading.Microsoft, Alphabet and Amazon received a boost from their cloud computing businesses, with Alphabet reporting 63% year-on-year growth for its Google Cloud service.“2026 is off to a terrific start,” Alphabet and Google CEO Sundar Pichai said in a statement, touting the company’s AI investment delivering returns.All four companies framed their results as proof that their integration of AI and building out of the infrastructure around it was working.The industry has for years faced questions about when its immense spending and fevered focus on the technology would pay off, while public concerns about AI’s impact on jobs and society has continued to grow.

Wednesday’s earnings reports seemed to provide a unanimous answer: AI will pay off in revenue from cloud computing.Meta’s call came after it announced last week it would be cutting 10% off its staff, about 8,000 employees, as it seeks to replace human labor with AI.The company also faced a regulatory setback in recent days after China blocked its $2bn acquisition of the AI firm Manus.Meta reported $56.31 in revenue, more than the $55.

45bn expected.It also revealed a more than 7% increase in its projected capital expenditure for this year, raising its estimate to $125bn to $145bn.During Meta’s earnings call on Wednesday, Meta CEO Mark Zuckerberg denied that AI would replace humans and said it would instead “amplify people’s ability to do what they want”.Meta is “on track to deliver personal super-intelligence to billions of people”, Zuckerberg said in an earlier press release.Microsoft announced a round of buyouts at the same time as Meta’s layoffs, saying that the company would offer voluntary retirement to about 125,000 workers.

The company reported $4,27 earnings per share, beating the market prediction of $4,06,Amazon was another tech giant to conduct a swath of layoffs this year, cutting nearly 10% of its corporate workforce in the last five months – about 30,000 workers,Earlier in the year, the company said it would spend some $200bn in one year on AI infrastructure.

The company reported earnings of $2.78 per share, above/below the $1.64 Wall Street predicted.Its revenue was $181.5bn.

Alphabet, whose stock has risen over 100% in the past year, has dumped money into its infrastructure spending for AI.The company announced earlier this year it was planning on a capital expenditure of about $180bn to $190bn, as much as double last year’s expenditure.Alphabet reported earnings of $5.11 per share, beating market expectations.It also reported $109.

9bn in revenue, outpacing the $107,2bn expected,
foodSee all
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A pasta bake and a sumac salad: Sami Tamimi’s prep-ahead sharing recipes

My ideal way of entertaining is completely fuss-free, with everything prepared ahead of time so I can enjoy being with my guests rather than worrying about cooking. I like to put big, generous dishes in the middle of the table, such as this one-tray chicken, pasta and chickpea bake, alongside a fresh salad, so everyone can serve themselves and share a simple, delicious meal.This is a comforting and flavourful dish that brings together tender chicken, hearty chickpeas and perfectly cooked pasta in a rich, pungent sauce. It’s a simple yet satisfying meal that’s ideal for busy weeknights or casual family meals. Everything cooks together in the oven, and the flavours blend beautifully while keeping prep and washing-up to a minimum

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From avocado to hemp, extra virgin olive and rapeseed, the shops are packed with various oils. But what is worth spending money on? And are any of them actually better for you? The world of cooking oils is confusing. I keep spotting new ones on supermarket shelves, trumpeting their health claims. Cold-pressed avocado oil, extra virgin macadamia oil, organic coconut oil, premium hemp seed oil … Even familiar oils are mired in controversy. Is it OK to cook with olive oil? Should you avoid seed oils? Meanwhile, prices keep rising – earlier this month, Walter Zanre, the CEO of Filippo Berio UK, said supermarkets were “taking the mickey” out of customers over olive oil pricing

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The surprising boom in blouge wine: ‘It’s for 5pm, in the sun’

Twenty years ago, a winery could do well selling one white and two reds, says Konrad Pixner, a northern Italian winemaker who set up his vineyard, Domaine de L’Accent, in Languedoc, France, in 2019. But today, importers and bars always ask: “Do you have something new?” So up in the hills, surrounded by deep gorges and limestone plateaus, Pixner is constantly experimenting.After a good harvest in 2023, Pixner walked into the shed he shares with other winemakers at 4am to find that his biggest vat of white wine, pressed from carignan blanc grapes, had overflowed during fermentation. He had run out of space, so he quickly “pumped the white juice into the tank where whole bunches of carignan noir were,” he says, and left them to ferment for 10 days together. In contrast to rosé, made from red grapes left for a short time with their skins on before being pressed, he created “blouge” – a light, fresh wine blended from white and red grapes that’s best served chilled

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How to make the perfect custard creams – recipe | Felicity Cloake's How to make the perfect …

Prue Leith reckons the custard cream is “arguably Britain’s most iconic biscuit” – and, certainly, we’ve been dunking this fern-patterned treat in our tea for well over a century, with early advertisements for this “delicious biscuit” placing it, perhaps aspirationally, in the “fancy” category. By 1920, Bermondsey baking behemoth Peek Frean could confidently declare the custard cream “far and away the most popular of all the cream sandwich biscuits”, a status only slightly dented by the time I was at school about seven decades later, when it sat just below its contemporary, the chocolate bourbon, in the playtime snack ratings.Despite my love of both custard and cookies, however, I’ve always found this particular custard-flavoured product a bit sugary and dull. As historian Lizzie Collingham explains in her magisterial book, The Biscuit: The History of a Very British Indulgence, it combines two early industrial foodstuffs, namely custard powder and machine-made biscuits, and though they may have been created in a factory, I think they’re much better made at home.Let’s be honest, the biscuit isn’t really the point of the packet variety – as children, we’d prise them open to scrape out the sugary filling, like bears sucking honey from a split log – but when you bake them yourself, it can be

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Impala, London W1: ‘Shamelessly, brilliantly too much’ – restaurant review | Grace Dent on restaurants

Impala is like no restaurant I’ve ever been to, yet it somehow has echoes of almost all of themLate last month, Impala drove into Soho already flaming hot in the hype stakes: this was a sizzling booking to brag about even before executive chef and co-founder Meedu Saad had turned on the stoves. Impala, after all, is a Super 8 restaurant, the group that has, among others, Tomos Parry’s Brat in Shoreditch, which has been constantly, unfalteringly brilliant since 2018. It also runs Parry’s second baby, Mountain, which is likewise wonderful; sometimes weird, yes, but always wonderful. Long before that, back in 2016, they opened Kiln, the famed live-fire Thai counter hangout that cheffy boys in beanies have tried and failed to emulate all over Britain, while Super 8’s beginnings were with the boundary-pushing and much-loved Smoking Goat. That is nothing less than a litany of solid-gold bangers, and now they’ve unleashed Impala by Saad, the former head chef at Kiln

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Ifrah F Ahmed’s debut cookbook is a love letter to Somali cuisine, history and people

On a video call from Brooklyn, between stops on her book tour, Ifrah F Ahmed is drinking ginger-root tea. The smell transports her to her childhood kitchen, where her mother often baked aromatic cardamom cake.“That’s a core childhood memory for me,” she said.For Ahmed, food isn’t just about sustenance. It is memory, inheritance and, perhaps most importantly, a record: “Somali history on a plate,” as she puts it

5 days ago
societySee all
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The landlords’ view of the rental market | Letters

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Visible sign of MPs’ boozing is comical | Brief letters

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Swearing banned by one in five councils in England and Wales, report on ‘busybody’ fines shows

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Obesity a key factor for rising cancer rates in young people in England, study finds

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Stress from racism may help explain why black women more likely to die in childbirth, study finds

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Earlier specialised care could prevent 10,000 miscarriages a year, UK study finds

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