MSFT and Meta Report Strong AI Earnings While Crypto AI Tokens Decline
Market Summary
AI major stocks are slightly down despite strong earnings from Microsoft and Meta, both attributing success to AI initiatives.
- Microsoft's cloud revenue increased 27% to $46.7 billion, with Azure surpassing $75 billion in annual revenue.
- Meta reported a 22% year-over-year revenue increase to $47.5 billion, with a 43% operating margin due to AI-driven ad models.
- The CoinGecko AI token category, including TAO, NEAR, ICP, and RENDER, is down 1.4%.
- The CoinDesk 20 index remains flat, trading below 4,000.
- Nvidia's rally in 2024 helped AI tokens exceed a $10 billion market cap, but recent events have reduced this to below $5 billion.
- Traders are cautious following the Fed’s recent messaging on inflation, impacting risk assets.
- Nvidia will report earnings at the end of August, which may influence AI token growth.
Market Movements
- BTC: Bitcoin experienced volatility, briefly falling below $116,000 due to hawkish remarks from Fed Chair Jerome Powell.
- ETH: Ether holds above $3,800, up 1.47%, supported by corporate treasury purchases.
- Gold: Gold fell 1.17% to $3,288.02 amid strong U.S. economic data.
- Nikkei 225: Mixed trading as investors await the Bank of Japan’s rate decision.
- S&P 500: S&P 500 slipped 0.12% after Powell indicated no imminent rate cuts.