dashboard



Nvidia Leads Chip Stocks Higher on Meta’s Planned Tech Binge

(Bloomberg) -- Buried in a gloomy earnings report from Meta Platforms Inc. was a bit of good news -- just not for the Facebook parent company.

Most Read from Bloomberg

New Covid Boosters Aren’t Better Than Old Ones, Study Finds

Adidas Cuts Ties With Ye, Absorbing €250 Million Profit Hit

Too Much Gas. Europe’s Energy Crisis Takes a Surprise Turn

Here Are the Most Expensive US Cities for Renters Right Now

The shares of companies that supply data centers gained after Meta Platforms said it’s planning to spend even more on components next year as it invests in infrastructure to support its push into digitally immersive experiences.

In its third quarter earnings report, Meta Platforms projected capital spending of $34 billion to $39 billion in 2023, up from $30 billion to $34 billion this year. The comments sent Nvidia Corp. and Marvell Technology Inc. up more than 3% in postmarket trading.

Arista Networks Inc., which makes networking gear used in data centers and counts Meta as one of its biggest customers, is up more than 7%.

“Amidst increased question/concern that Meta would significantly reduce their forward capex guide in conjunction with third quarter results, tonight we got the absolute opposite,” Wells Fargo analysts led by Aaron Rakers said in a report.

While Meta’s spending plans are a boon to its suppliers, it was received poorly by investors skeptical of the high costs associated with its strategic shift. The stock dropped 14% after the company projected weaker-than-expected sales in the current quarter.

Most Read from Bloomberg Businessweek

What the Alzheimer’s Drug Breakthrough Means for Other Diseases

The Fantasy of Instant Delivery Is Imploding

10 Takeaways From Matt Levine’s ‘The Crypto Story’

From Bedrooms to Kitchens, Europe Ponders How Cold Is Too Cold

The Private Jet That Took 100 Russians Away From Putin’s War

©2022 Bloomberg L.P.
Click Here To Get Funded!