Meta Platforms

Google rolls out changes for users, apps developers as EU tech rules loom

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Google rolls out changes for users, apps developers as EU tech rules loom

Alphabet’s Google announced changes to search results and introduced new tools for app developers to promote their products on third-party apps and rival app stores, aiming to comply with the EU’s Digital Markets Act (DMA) that targets to limit the power of Big Tech. The changes, which are part of Google’s efforts to meet the requirements of the DMA by March 7, include modifications to search results that will affect the traffic of large intermediaries, aggregators, hotels, airlines, merchants, and restaurants. Google will also seek user consent for data sharing across its products and services, allow app developers to use alternative billing systems besides Google Play’s, and launch a program for developers to direct European users outside the app for product promotion. Additionally, Google plans to introduce data portability software in Europe to facilitate the movement of user data to third-party apps or services.

Alphabet, Meta ad sales in Q4 unlikely to reflect gen AI investments

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Alphabet, Meta ad sales in Q4 unlikely to reflect gen AI investments

– Alphabet (GOOGL.O) and Meta Platforms (META.O) are expected to report muted impact from generative artificial intelligence on their advertising business in their fourth-quarter results.
– Alphabet has introduced AI tools to help advertisers target audiences more cost-effectively and distribute marketing budgets across Google’s ad network.
– Meta is using generative AI to create variations of ad campaigns.
– Bernstein analysts consider generative AI to be in the “hype cycle” but recognize investors are looking for incremental use cases and revenue streams.
– The digital advertising core business is expected to have been resilient for the quarter ended December 31.
– Microsoft (MSFT.O) is anticipated to benefit early from the generative AI race, with increased demand for its cloud services.
– Alphabet’s stock surged 58% last year, Meta’s stock nearly tripled, and the S&P 500 index gained roughly a quarter, partly due to an AI-fueled tech rally.
– Political advertising is expected to be a catalyst for Meta and Google, with spending on political advertising in the U.S. predicted to jump 30% in 2024 from 2020.
– Alphabet is expected to report an 11.8% growth in fourth-quarter advertising revenue to billion.
– Google introduced the AI chatbot Bard and a search generative experience (SGE) that generates written responses to some search queries.
– SGE could contribute between .6 million and 3 million in incremental search advertising revenue by 2025.
– Meta’s AI tools for advertisers have shown potential time savings for users.
– Meta is expected to report .1 billion in fourth-quarter revenue.
– Meta’s AI tools that find potential customers and test ad performance are earning billion on an annualized basis.
– Meta could generate .7 billion in ad revenue in 2025 if it introduces paid ads within AI assistants on WhatsApp, Messenger, and Instagram.
– Snap (SNAP.N) partnered with Microsoft to place sponsored product links in its chatbot, which could earn Snap 4 million in 2024, growing to 6 million in 2025.
– Amazon.com (AMZN.O) is introducing ads on its Prime Video service and developing Amazon Bedrock, a service for creating applications with AI models.
– Amazon’s Prime Video ads could increase its ad revenue growth by 5% to 10%.
– Amazon is set to report its results the same week as the article’s publication.

Investors eye , ‘critical season’ for Big Tech earnings

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Investors eye , ‘critical season’ for Big Tech earnings

Five Big Tech companies with a combined market value of over trillion will report earnings this week. Investors are interested in the potential benefits of artificial intelligence (AI) technologies from Microsoft, Google-parent Alphabet, Meta Platforms (formerly Facebook), Amazon, and Apple. These companies have been driving the S&P 500 index’s record gains in 2023. The CEO of deVere Group describes this earnings season as “critical” for Big Tech due to its influence on the broader market and the technology sector’s role in economic growth. Investors are also looking for updates on AI innovation, consumer behavior, and e-commerce trends. The performance of these tech giants will have significant implications for market and economic sentiment.