Here's my power rankings for the big 4 hyperscalers after this earnings season
📰 source: cnbc_topnews · 💼 business
amazon ceo andy jassy finally gave investors the line of sight they wanted on ai spending, raising the company's 2026 capex budget by $20 billion to $220 billion. the stock responded with its biggest one-day gain in over a decade, up 15.3% to $271.58, adding $382 billion in market cap. jassy said amazon sees a clear line of sight to strong financial returns and even potential for aws to become a $1 trillion revenue business. amazon's ai run rate is over $25 billion, growing triple digits year over year. but the heavy spending hurt free cash flow, which was negative $7.6 billion in q2.
alphabet raised capex by $15 billion to $195-205 billion but faced a stock drop after a poorly received earnings call. microsoft avoided negative free cash flow and boosted copilot to 30 million paid seats. meta had the weakest explanation for its spending, with no clear cloud plan. cramer ranks amazon first, microsoft second, alphabet third, meta last.
why it matters: amazon's clear ai spending rationale boosts confidence, while meta's lack of plan raises questions about hyperscaler capex returns.
source: cnbc_topnews
sentiment: +0.40 · impact: 0.30