AI Investment Boom Splits Market As Mega-cap Firms Gain While DoorDash, Duolingo, And Roblox Stocks Plunge

Benzinga

Big tech is being rewarded for heavy AI spending, while smaller tech companies are getting hit. Amazon, Alphabet, and Microsoft gained on higher capex guidance, but DoorDash, Duolingo, and Roblox saw sharp selloffs as investors questioned whether their AI investments will pay off.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03Across the tech sector, companies are boosting spending to chase the AI boom.

00:07But Wall Street's reaction has been uneven.

00:09Mega-cap firms like Amazon, Alphabet, and Microsoft were rewarded for their heavy CapEx guidance,

00:15while smaller players such as DoorDash, Duolingo, and Roblox saw double-digit stock drops.

00:21DoorDash's 17% plunge followed plans to spend hundreds of millions on tech and acquisitions,

00:26while analysts cited margin concerns.

00:29Duolingo's shares fell 25% after the company emphasized user growth over profit,

00:34prompting a downgrade from KeyBank.

00:37Roblox slipped 16% as safety and infrastructure investments spooked investors.

00:42Analysts say investors remain cautious about non-mega-cap companies' ability to turn spending into returns.

00:47For all things money, visit Benzinga.com.

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