Apple, Alphabet, and Meta: 3 Big Takeaways from Recent Earnings

Goldman Sachs estimates Alphabet, Amazon, Meta, Microsoft, and Oracle have $3.2T in future AI-related commitments, including $1.3T in unstarted leases and $1.9T in other purchases, not yet on their balance sheets. Alphabet alone has $924.4B in future material purchase commitments.

Bank of America reiterated a Buy rating on Apple (AAPL) with a $370 price target, citing strong iPhone sales and long-term AI opportunities. Apple's Q4 revenue rose 12% YoY to $114.5B, with iPhone revenue up 17%. However, margin pressure from higher memory costs and slowing Services growth are concerns. BofA expects iPhone growth to continue but notes near-term margin compression.

Meta acquired Conductor, a startup enabling developers to manage multiple AI coding agents. Conductor's platform supports agents from different companies, allowing parallel development. Financial details were not disclosed. Conductor's services will be phased out, with a new product expected in 2027. OpenAI also acquired Pierre Computer, a developer tools startup, to enhance its Codex platform.

Shield AI agreed to acquire Echodyne for $5.3B, raising $2.5B for defense AI expansion. Agility Robotics completed its merger with Churchill Capital, securing $465M and starting Nasdaq trading. Meta acquired AI startup Conductor to boost AI coding agents and software development.

Apple, Google, and Microsoft issued bonds totaling $38.5 billion to fund AI expansion and pay debt. Apple sold $7.5 billion, Microsoft $25 billion, and Google €6 billion.

Meta, Google, and TikTok sued to block California's Assembly Bill 1709, which bans personalized feeds and autoplay for users under 16. The companies argue the law restricts free expression and access to tailored content. California's Attorney General is defending the law. The suits follow recent settlements over teen social media addiction claims.