AMZN - META - MSFT: Big Tech's Trillion-Dollar AI Bet
Fundamental and Technical Immersion with Price Targets - Market Update
The current market landscape is increasingly defined by an unprecedented capital investment cycle in artificial intelligence. This fundamental deep dive provides an examination of three companies at the epicenter of this transformation: Meta Platforms, Amazon, and Microsoft. These technology powerhouses are no longer simply leaders in social media, e-commerce, and enterprise software; they are engaged in a high-stakes race to build the core infrastructure that will power the next decade of digital innovation, creating complex and evolving investment theses that demand rigorous analysis.
Each company is pursuing distinct yet overlapping strategies that reflect different competitive positions and strategic priorities. Microsoft is integrating OpenAI capabilities and “Copilot” services throughout its dominant enterprise software ecosystem, leveraging Azure cloud infrastructure as the foundation for AI monetization. Amazon is deploying massive capital expenditures to defend AWS market leadership, recently validated by a $38 billion cloud agreement with OpenAI, while its e-commerce and advertising divisions provide substantial financial support for this infrastructure buildout. Meta is executing a dual-pronged approach, channeling the considerable profitability of its advertising platform into both open-source AI development through Llama and its ambitious, long-term metaverse initiative through Reality Labs.
Last week, my fundamental analysis covered NFLX 0.00%↑ , TSLA 0.00%↑, and INTC 0.00%↑, I mentioned that the majority of the bearish move for one was likely complete, detailed my bullish considerations for another, and stressed the importance of caution with the third. Premium subscribers can attest that all three considerations have proven accurate. The analysis, including the medium term price targets with supports to watch, remains entirely valid today, as fundamentals and long timeframes offer stability in considerations. You can access the analysis here:
Today, we apply the same fundamental and technical approach to META 0.00%↑ and MSFT 0.00%↑, both of which fell after their earnings reports. In today’s publication, I urge you to read the main elements that impacted these stocks and consider the long-term sustainability of those factors. AMZN 0.00%↑ is also analyzed today, so you can have more references to navigate the recent rally.
This market is beginning to test people who have been looking for buying opportunities in individual stocks; these chances are arising while the major indices benefit from internal giants rotating. Last weekend’s study of the Hindenburg Omen signal, complete with charts and facts, should help you navigate the current noise.
The three companies analyzed today are studied their technical charts with price targets and levels to watch for the short and medium term.
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Let’s begin with META, then MSFT, and we finish with AMZN, then we continue with stock market and Bitcoin commentary.
Meta Platforms (META) is a global technology conglomerate that operates two distinct business segments. The first and primary profit engine is its “Family of Apps” (FoA), which includes the world’s largest social media and communication platforms: Facebook, Instagram, WhatsApp, and Messenger. This division generates the vast majority of the company’s revenue through a sophisticated digital advertising business that leverages its massive user base. The second segment is “Reality Labs” (RL), a future-focused, capital-intensive division responsible for building the “metaverse,” which involves significant long-term investments in artificial intelligence (AI), virtual reality (VR) hardware like the Quest headset, and augmented reality (AR) technology.
Meta Platforms: AI Investment Accelerates Amid Strong Ad Growth