1 hyperscaler megacap down, 3 to go. Alphabet raises the stakes on AI spending
📰 source: cnbc_topnews · 💼 business
alphabet raised its 2026 capex forecast by $15 billion to $190-$205 billion, saying spending will increase again in 2027. the heavier investment pushed q2 free cash flow to negative $5.8 billion — the first negative quarterly reading in company history. the stock fell 7% the day after earnings and was down nearly 8% for the week.
now the focus turns to meta, amazon, and microsoft, which report next week. alphabet's results suggest enterprise ai demand is strong, but investors are no longer giving a free pass on spiraling capex. meta has already raised its own 2026 capex guidance to $125-$145 billion, and shares plunged after that. amazon has about $200 billion in planned 2026 capex and has been issuing debt to offset cash flow pressure. microsoft has roughly $190 billion in expected capex for calendar 2026, and its stock is down 20% this year. free cash flow will be a key metric across all three.
why it matters: alphabet's capex hike and negative cash flow set the tone for big tech earnings, as investors demand monetization of ai investments.
source: cnbc_topnews
sentiment: -0.20 · impact: 0.80