Tech Up After Amazon Earnings -- Tech Roundup - MarketWatch

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Shares of technology companies ticked up after strong earnings from one giant.

Amazon.com shares rallied after the online megastore posted third-quarter sales growth ahead of the Wall Street target. "I think the market investors and traders alike thought that even with cost of capital rising across the board, that mega-tech would in essence deliver what the market needed," said Quincy Krosby, chief global strategist at brokerage LPL Financial.

"They've been stymied with mixed reactions to the earnings picture, and the guidance."

While some of the speculative enthusiasm for artificial intelligence has faded in recent weeks, it remained a critical topic in tech companies' earnings reports, said Krosby. "Microsoft was rewarded for saving their cloud, for putting more into AI innovation and development," said Krosby. "And that's essentially why Alphabet was hit ... their cloud revenue was lower."

Google agreed to invest up to $2 billion in Anthropic, building on its earlier investment in the artificial-intelligence company, and adding fuel to the race between startups trying to achieve the next big breakthrough in the emerging technology.

Apple shares slipped ahead of the earnings report next week. "Apple is crucial, given its weighting in the market," said Krosby. "There are concerns about Apple's sales in China, which, according to reports, have been limited due to Huawei's surging sales of their smart phone."

Write to Rob Curran at rob.curran@dowjones.com

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