META and GOOGL stock movement due to AI spending plans

Meta and Alphabet's stock movements were driven by AI spending plans on April 30th. Meta's shares dropped 8.55% to $611.91, while Alphabet's surged over 5%. Meta's decline was due to higher-than-expected AI and infrastructure capital expenditure (capex) guidance, despite strong Q1 results. Alphabet's stock rose as it also announced increased AI spending.

The tech sector, specifically social media and search engine companies, was affected. Investors reacted to the increased capex, with Meta's shares experiencing their worst day since October 2020 and Alphabet's seeing its best day since November 2021. The market is watching how rising spending and potential returns on AI investments will impact future earnings.

Upcoming catalysts to watch are both companies' next earnings reports. Meta is expected to report Q2 results on July 26th, while Alphabet's Q2 report is scheduled for July 25th. These reports will provide updates on AI spending and its impact on earnings. Additionally, any further guidance on AI strategies and their potential long-term benefits will be crucial.