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To follow up on yesterday’s anticipated financial earnings reports from Meta, Microsoft, Alphabet and Amazon, we see that spending as a percentage of revenue was significantly higher than industry averages.
We are currently in the peak of this quarter’s earnings season, and Microsoft, Alphabet, Amazon, and Meta’s anticipated reports have investors bracing for a combined 2026 Capex exceeding $600–700 billion.
Joining the ranks of OpenAI, xAI and other tech companies signing lucrative government contracts, Google has agreed to the Pentagon’s language around “any lawful government purpose,” triggering a rise in its stock price, and a decline in morale among hundreds of Google employees (including 20 principals, directors, and VPs).
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