The S&P 500 (SPX) is trading lower on Thursday following widely anticipated earnings reports from Microsoft (MSFT), Meta Platforms (META), and Alphabet (GOOGL). During the quarter, the three mega-cap companies spent a combined $80 billion on artificial intelligence infrastructure with plans to boost capital expenditure in 2026. The big question that’s scaring investors is whether the massive investments will pay off.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
“No one needs reminding that history is full of episodes of technology exuberance that eventually left the early investors battered,” said SLC Management managing director Dec Mullarkey to the Financial Times.
Big Tech Raises Capex Guidance
Out of the three companies, META stock is taking the hardest hit and is down by about 12%. The Facebook owner said that its capex could exceed $100 billion next year and raised the low end of its 2025 capex guidance to $70 billion from $66 billion.
However, it wasn’t only Meta, as Microsoft said that its 2026 capex would top its 2025 figure, while Alphabet raised its 2025 capex estimate to between $91 and $93 billion from between $75 and $85 billion.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.