Meta Shares Below $600 in play on Escalating Fears Over Massive AI Capex

Posted on April 30, 2026 by Olumide Adesina

Meta’s CEO Mark Zuckerberg rekindled concerns that the historic levels of investment he’s making to catch up in the artificial intelligence race won’t pay off.

This possibility caused shares to plummet. The social media behemoth predicted full-year capital expenditures of $125 billion to $145 billion, surpassing analysts’ projections and representing roughly a 7.4% increase over the company’s January projections.

Chief Financial Officer Susan Li stated on a call with investors on Wednesday that Meta is dealing with “higher component pricing” and additional data center costs, while maintaining its conviction that its AI strategy is working.

Zuckerberg stated that his company would invest hundreds of billions of dollars in AI infrastructure by the end of the decade. Meta has revealed deals worth billions of dollars.

Wall Street did not share Zuckerberg’s “confidence” in the decision to increase AI spending. The CEO’s failure to explain how Meta intends to generate a return on its investments infuriated investors, causing shares to drop as much as 7% during prolonged trading.

Meta wasn’t the only significant tech company to increase expenditures. Amazon. Com revealed quarterly capital expenditures on increasing data center capacity that exceeded analysts’ expectations. Google increased its capital expenditures for the entire year to $190 billion.

Google sparked a rally despite beating on quarterly revenue and profit, indicating confidence in the company’s AI bets. Meta beat Wall Street’s estimate of $55.51 billion with first-quarter sales of $56.3 billion. Sales for the current quarter were estimated between $58 billion and $61 billion, which is about in line with expectations. The number of daily active users on Meta’s social media platforms decreased slightly to 3.56 billion in the first quarter.

The business mentioned Russia’s limitations on WhatsApp access and internet outages in Iran. Since the company started using that metric, that was the first decline. Meta would have seen positive, according to CFO Li.

Google, Amazon Outpace Facebook in AI Race During Earnings Surge

Posted on April 30, 2026 by Olumide Adesina

Meta Platforms is falling behind while Alphabet’s Google is clearly benefiting from its AI investment. Alphabet, Meta, and Amazon. Com released a plethora of financial data on Wednesday, including the two companies’ results and Microsoft. The four businesses are at the center of an infrastructure build-out anticipated to cost trillions of dollars because they are the biggest spenders on AI data farms

Alphabet’s stock increased by 7% in late trading, outperforming other AI behemoths. The tech-heavy Nasdaq 100 Index saw a 0.9 percent increase in futures. It was more difficult for Meta to convince investors. After the company increased full-year capital expenditures to as much as $145 billion, partly due to rising component prices, its shares fell more than 6%. Google and other companies have also raised their spending targets, so Meta is not the only one.

However, Meta doesn’t have as much to show for this enormous investment. Its consumer AI app has taken longer to gain traction than Google’s, and it does not offer cloud computing services.

Mark Zuckerberg, CEO of Meta, stated that he was confident in the choice to increase spending, but his responses to analysts were ambiguous. He stated on a conference call that Meta does not have “a very precise plan” for how each AI product will be developed. Zuckerberg stated, “I think we have a sense of the shape of where things need to be,” although he acknowledged that his responses might not be “fulfilling.

According to Forrester Research Inc., “the companies continue to make those bets, forcing investors and customers alike to assess how their interests are impacted because the potential payoff of AI leadership seems so high.” In a note, analyst Lee Sustar stated.

Revenue from Amazon’s cloud division increased by 28% over the previous year, the fastest growth rate since the second quarter of 2022. That company acts as a gauge for the advancement of AI. Additionally, the company has benefited from investments in two of the top AI startups, OpenAI and Anthropic PBC.

Amazon’s stock increased on Wednesday After News revealed that Anthropic was contemplating a new funding round at a valuation of more than $900 billion.

Microsoft predicted that revenue from cloud computing would rise along with spending. The company projects “modest acceleration” in the second half of the year and a 40% increase in sales in its Azure cloud division in the current quarter. The low proportion of Microsoft Office users who are paying for the company’s Copilot AI tools continues to raise concerns. According to the company, the number of paid Copilot seats increased by 5 million from the previous quarter to 20 million

Gold Falls to Lowest Level in Nearly Four Weeks, Nears $4,590/Oz

Posted on April 29, 2026April 29, 2026 by Olumide Adesina

Bullion was close to $4,590 per ounce after declining 2.4 percent over the preceding two sessions to the lowest level in nearly four weeks. Iran has requested that the US lift its naval blockade of Hormuz while the two countries negotiate a settlement to the two-month conflict that has disrupted the world’s energy supplies, according to President Donald Trump.

Mediators in Pakistan anticipate that Iran will present an updated proposal in the coming days. In the upcoming days, traders are monitoring interest rate decisions in the US, the EU, the UK, and Canada. The Bank of Japan maintained its benchmark rate at 0.75 percent on Tuesday, with a split vote indicating a higher likelihood of a hike in June.

Investors wil lwatch whether Jerome Powell will stay on the board after his term as chair expires. The Federal Reserve is generally expected to hold rates at its meeting that concludes on Wednesday.

The energy supply shock is exacerbating inflation risks because of the possibility that central banks will maintain or even raise interest rates, which is detrimental to non-yielding bullion. The opportunity cost of holding gold has also gone up due to rising bond yields.

Since the conflict started at the end of February, the metal has lost roughly 13%, while crude oil has skyrocketed. Ole Hansen, head of commodity strategy at Saxo Bank A/S, stated in a note that some technical selling occurred following “a break below recent support around $4,650.” The biggest short-term upside catalyst for the metals is a reopening of the Strait and a subsequent decline in oil, but the market’s immediate focus is still on mediation efforts.

Goldman Sachs Restricts Hong Kong Staff from Anthropic’s Claude AI

Posted on April 29, 2026 by Olumide Adesina

Goldman’s action resulted from the US bank interpreting its contract with Anthropic strictly after consulting with the company and determining that the bank’s employees in Hong Kong shouldn’t be allowed to use any Anthropic products.

The source told Reuters that other popular models like Gemini and ChatGPT were still accessible on the internal platform. Because they were not permitted to speak to the media, they refused to be identified.

Hong Kong has largely escaped these restrictions, while mainland China forbids the use of AI models developed by US companies, such as ChatGPT and Claude, with usage limits imposed by the U.S. A representative for Anthropic told the FT that their Claude models had never been formally “supported” in Hong Kong, but they would not elaborate

The newspaper also stated that contracts with other AI vendors, like OpenAI, were not covered by the ruling. Marco Ar is the chief information officer at Goldman Sachs.

Microsoft Ends Revenue Share Payments to OpenAI

Posted on April 29, 2026 by Olumide Adesina

Microsoft (MSFT) shares decreased on Monday as the tech giant and OpenAI (OPENAI) announced that their partnership has continued to develop and that OpenAI’s license will become non-exclusive. Microsoft stated on its website, ”

Miss/soft guidance on Copilot slowdown, higher-for-longer CapEx, or AI returns → another leg down, possibly testing $400 or lower (support levels discussed around there). This risk is highlighted in some Reddit and analyst chatter following the stock’s decline below $400 per share.

MSFT stock has faced pressure in 2026 (down significantly YTD from highs), with analysts mixed on AI spending, competition, and growth outlook. Some see the dip as a buying opportunity.

Today, we are announcing an amended agreement to simplify our partnership and the way we work together, grounded in flexibility, certainty, and a focus on delivering the benefits of AI broadly.

The amended agreement’s increased predictability enhances our combined capacity to develop and run AI platforms at scale while giving both businesses the freedom to explore new prospects. Microsoft will be OpenAI’s main cloud partner under the revised agreement, and OpenAI products will launch first on Azure.

A change has been made, though, stating that OpenAI may look elsewhere if Microsoft “cannot and chooses not to support the necessary capabilities.” Julian Lin is the head of the Best of Breed Growth Stock investing group.

Additionally, OpenAI can offer all of its products to clients via any cloud provider, including Amazon Web Services (AMZN). Additionally, Microsoft will have a non-exclusive license to use OpenAI’s intellectual property for its models and products through 2032.

Amazon shares lost 0.8 percent in late morning trading, giving up earlier gains. As part of the revised agreement, Microsoft will no longer give OpenAI a revenue share; however, OpenAI will continue to pay Microsoft revenue shares through 2030.

Oracle, CoreWeave Back OpenAI After Report Reveals Missed Sales and User Targets

Posted on April 29, 2026April 29, 2026 by Olumide Adesina

Oracle (ORCL) and CoreWeave (CRWV) supported OpenAI on Tuesday after the Wall Street Journal revealed that the AI developer had recently fallen short of user and sales goals, rekindling worries about excessive spending in the industry.

Shares of companies that partnered with the company plummeted following the report, indicating that OpenAI’s business was slowing. Oracle, a major software company, and CoreWeave, a provider of data centers, both experienced closures of about 4% and 5%, respectively

Oracle wrote, “We’re incredibly excited about our partnership with OpenAI and remain focused on building and delivering the capacity they need to support rapidly growing demand.”

CoreWeave expressed a similar sentiment that it had other partners. A CoreWeave representative stated, “OpenAI is a terrific partner, but not our only one.” The company has an “expanding set of customers like Meta Platforms, Anthropic, Microsoft, Google, IBM, Perplexity AI, Jane Street,

OpenAI has been on a spending binge due to CEO Sam Altman’s hasty acquisition of processing power. The missed metrics have rekindled concerns about the company’s rising costs amid intensifying competition.

The report comes at a crucial time because the company was reportedly preparing to go public this year. With commitments totaling $122 billion at $852 billion, OpenAI announced last month that it had closed its most recent funding round. That is more than the $110 billion the company reported raising in February, when its valuation was $730 billion.

Major Blow to Meta — China Forces Reversal of $2B AI Startup Takeover

Posted on April 28, 2026 by Olumide Adesina

China has decided to prohibit Meta Platforms Inc. from its $2 billion purchase of the agentic AI startup Manus, an unexpected move to end a contentious agreement that has drawn criticism over technology leaks to the US. In a brief statement on Monday, the National Development and Reform Commission issued an order to cancel the agreement.

Without providing further details, the influential state planner stated in a one-line notice that it has decided to forbid foreign investment in the startup in compliance with laws and regulations.

The decision, which surfaced weeks before a high-profile summit between US President Donald Trump and China’s Xi Jinping, is expected to send a chill through China’s rapidly developing AI industry. Following the mostly finalized deal, Beijing has increased its scrutiny of important industry companies.

Although domestic critics have since bemoaned the loss of valuable technology to a geopolitical rival, the sale was initially praised as a model for startups with global aspirations.

The founders of Manus began in China, but in 2025, they moved their main office and important employees to Singapore. When the agreement was made public in December, it was unclear whether Beijing would use its power over a transaction that, in theory, happened outside of its borders.

According to Ke Yan, a tech analyst with DZT Research in Singapore, “the Manus block is a clarifying moment.”. “Manus was pulled back even though its founders were based in Singapore and it was incorporated here. Beijing’s message is that the location of the legal entity is not important. “As Meta looks to compete in AI against rivals from Microsoft Corp., the Manus decree may be a setback.” and Alphabet Inc., Google to Anthropic PBC and OpenAI. Manus was meant to assist Meta in taking the lead in the rapidly evolving field of AI agents, or services that employ AI to carry out tasks.

US Government Accuses DeepSeek of Stealing American AI Tech

Posted on April 28, 2026 by Olumide Adesina

The US State Department has ordered a global campaign to draw attention to what it claims are widespread attempts by Chinese businesses, including AI startup DeepSeek, to steal intellectual property from US AI labs.

“Warn of the risks of utilizing AI models distilled from US proprietary AI models, and lay the groundwork for potential follow-up and outreach by the US government,” according to the cable.

Distillation is the process of training smaller AI models using output from larger ones to reduce the cost of training a potent new AI tool. China’s increasing independence in the field was highlighted on Friday when DeepSeek, the Chinese startup whose low-cost AI model stunned the world last year, unveiled a sneak peek of a highly anticipated new model tailored for Huawei chip technology

Chinese AI companies Moonshot AI and MiniMax were also mentioned in the cable. Beijing “attaches great importance to the protection of intellectual property rights,” according to the Chinese Embassy in Washington, which referred to the White House’s similar accusations this week as “baseless allegations.”.

The cable instructs diplomatic personnel to discuss “concerns over adversaries’ extraction and distillation of US AI models” with their foreign counterparts. It was sent to diplomatic and consular posts worldwide on Friday.

According to the document, “a separate demarche request and message has been sent to Beijing for raising with China.” The unreported cable indicates that the Trump administration is paying attention to worries about the Chinese distillation of US AI models. “Foreign actors can release products that seem to perform comparably on specific benchmarks at a fraction thanks to AI models developed from covert, unauthorized distillation campaigns.”.

Gold Bullion Stabilizes as Iran Peace Talks Gain Traction

Posted on April 28, 2026 by Olumide Adesina

Gold saw a slight decline as traders considered the most recent attempts by the US and Iran to reach a negotiated resolution to the two-month conflict that has stifled energy supplies and increased inflation risks.

Bullion was trading near $4,670 per ounce after falling 0.6 percent on Monday. According to White House Press Secretary Karoline Leavitt, US President Donald Trump called a meeting of national security officials to discuss Iran’s most recent peace proposal, but maintained red lines on any agreement to end the conflict.

The remarks came after reports that Tehran had suggested a temporary agreement in which Washington would lift its blockade of ships traveling to and from Iranian ports in exchange for Tehran reopening the Strait of Hormuz. Oil product flows have been choked off by the standoff, and daily transits via the strategic waterway have almost zeroed.

Additionally, the Iranian proposal would delay more intricate discussions regarding the nation’s nuclear program. In a note, Marc Loeffert, a trader at Heraeus Precious Metals, stated that the ceasefire’s indefinite extension “prolongs market uncertainty” because Hormuz is blocked.

He stated, “The combination of economic stagnation and rising prices could provide fertile ground for the gold bull market to continue in the long run.”. This week, traders will be monitoring interest rate decisions made in the US, the UK, the EU, and Canada. The Bank of Japan maintained its benchmark rate at 0.75 percent earlier on Tuesday, despite a split vote that suggested an increase.

Microsoft: MSFT Set to Crash Below $400 as OpenAI Ends Revenue Share Payments

Posted on April 27, 2026April 29, 2026 by Olumide Adesina

MSFT stock has faced pressure in 2026 (down significantly YTD from highs), with analysts mixed on AI spending, competition, and growth outlook. Some see the dip as a buying opportunity.

Today, we are announcing an amended agreement to simplify our partnership and the way we work together, grounded in flexibility, certainty, and a focus on delivering the benefits of AI broadly.

The amended agreement’s increased predictability enhances our combined capacity to develop and run AI platforms at scale while giving both businesses the freedom to explore new prospects.

Microsoft will be OpenAI’s main cloud partner under the revised agreement, and OpenAI products will launch first on Azure.