Big Tech Spending Surges Amid Capex Growth Slowdown

Reported about 6 hours ago

As major corporations report their fourth-quarter results, a stark divide is emerging between the top seven companies in the S&P 500, which are significantly increasing their capital expenditures, and the rest of the firms, which are struggling with minimal growth. While the Magnificent Seven ramped up spending by 40% in 2024, the remaining S&P 500 firms saw just a 3.5% increase. Concerns persist regarding the effectiveness of high investments in artificial intelligence, especially amid rising tariffs and trade tensions. Overall, the trend highlights a growing gap in corporate financial health and investment capabilities.

Source: YAHOO

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