CAC 40 Declines As Meta Announces Higher AI Spending

(RTTNews) - French stocks traded slightly lower on Thursday as investors reacted to mixed earnings results and awaited the latest financial results from the U.S. megacaps.

Sentiment was dented by Facebook parent Meta Platforms' disappointing Q2 revenue outlook and plans to spend nearly $100 billion this year in its AI products.

Separately, computing giant IBM reported first quarter earnings ahead of expectations, but sales came in slightly below expectations.

Microsoft, Intel and Google parent Alphabet will report results after the market close later today amid much uncertainty what an AI-dominated future looks like.

The benchmark CAC 40 was down 29 points, or 0.4 percent, at 8,062 after closing 0.2 percent lower the previous day.

Spirits maker Pernod Ricard tumbled nearly 3 percent after reporting worse than expected third quarter sales.

Software maker Dassault Systemes declined 2.4 percent despite reporting solid first-quarter results and backing guidance.

Sanofi surged almost 4 percent. The pharmaceutical giant reiterated its outlook for 2024 adjusted earnings per share (EPS) to decrease by a low single-digit percentage, excluding currency fluctuations.

Lender BNP Paribas rose about 1 percent after beating first-quarter profit forecasts.