Tech Drops After Meta Earnings, But Microsoft, Alphabet Rise After Hours - Tech Roundup

Shares of technology companies fell after Meta Platforms warned it would have to spend heavily to keep up with an artificial-intelligence arms race.

Meta tumbled after the Facebook owner said it would have to increase its capital expenditure to a range between $35 billion and $40 billion from a prior estimate of $30 billion to $37 billion.

Shares of companies whose wares Meta might buy under the new capex plan, such as Nvidia, Super Micro Computer and Dell Technologies, rose, however.

Meanwhile, AI optimism and bets on the "Magnificent Seven" may be further stoked by strong earnings from Microsoft, which it reported after the bell.

Similarly, shares of Google owner Alphabet surged in the wake of its earnings report. Both were set to test all-time highs.

Shares of Rubrik shares rallied on their market debut, as the provider of cybersecurity software became the latest tech company to tap the initial public offering market.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

April 25, 2024 17:34 ET (21:34 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.