(Bloomberg) — A $245 billion exchange-traded fund tracking the Nasdaq 100 dropped in late hours, with traders weighing results from two of the tech giants that have powered the rally in stocks amid the artificial-intelligence frenzy.
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Alphabet Inc. sank after reporting revenue from its core search advertising business that fell short of estimates, overshadowing an otherwise strong end to the year. Microsoft Corp.’s cloud growth disappointed some on Wall Street — even as the company posted its strongest revenue growth since 2022.
The stakes are high for tech earnings after a surge in valuations spurred warnings about an overheated market and turned AI into a “show me” story. Five megacaps with a combined market value of over $10 trillion report results this week. Those firms, along with the other members of the so-called Magnificent Seven, carry a nearly 34% premium to the S&P 500 in terms of forward…
