Alphabet’s report marks a baleful start to Big Tech earnings week for investors focused on the digital ad market, and analysts at Needham said it is likely bad news for Meta.
“GOOGL talked about more hardware spending going forward. GOOGL and META are both spending more capX and op Ex on hardware, which implies lower [Return on Invsted Capital] than in the past when GOOGL was predominantly a software and advertising biz,” they wrote in a Wednesday note.
Meta is scheduled to report earnings after the bell Wednesday.
