Dan Gallagher

Google wants as many users as it can using Gemini.

So they're going to build and invest in that because you need the AI infrastructure to power that and to grow the services.

Honestly, it's mixed because it depends on the day you ask that question.

We saw last week when Meta announced, they put out this really big CapEx number, this projection, but they also had really strong results.

And it was pretty clear AI was helping that business go up.

And so you saw the stock go up.

with Google, with Alphabet, you're seeing kind of the opposite.

The business is still strong.

It's like they showed a similar acceleration in their business and they put out a big CapEx number, but in the market reaction afterwards, everyone's kind of more keen on the CapEx number.

The other difference between the two is Metastock was way down before their earnings report because there was some other concerns about them and Google's has been up a lot.

And then you've had this week kind of this general over

all worry about AI disruption, what AI could do to all these traditional tech companies, and that feeds into it as well.

Thank you for having me.

In this case, I boil it down to simplicity versus complexity.

Meta, 98% of their business is advertising.

They've been able to use AI in ways to improve that, drive more engagement, better targeting, and so forth.

And that's showing up in their growth.

And they projected a really strong, essentially, growth acceleration for the first quarter, which kind of sold the message that AI is actually helping them.

And it gave them essentially a pass on what's been this spending.

All of the big companies have been spending a ton on AI.