Shares of Amazon, Meta, and Microsoft dropped after Alphabet raised its 2026 capital expenditure forecast, even as the search company reported accelerating cloud growth.
Alphabet's move makes it more likely that Amazon and Microsoft will follow suit, according to Evercore ISI's Mark Mahaney:
- Alphabet's shares slid 7%, and Amazon, Meta, and Microsoft also fell:
- Alphabet had long been Wall Street's favorite hyperscaler due to its ability to convert high capital expenditures into revenue:
- Microsoft and Meta will be next in testing investor appetite when they report:
Amazon's long-term debt surged 81% to $119 billion:
Alphabet's debt rose 111% to $98 billion:
Analysts expect Microsoft's free cash flow to turn negative:
