Amazon, Meta and Microsoft Face Investor Skepticism After Google Hikes Capex Forecast
Shares of Amazon (AMZN), Meta Platforms (META) and Microsoft (MSFT) fell after Alphabet Inc. (GOOGL) raised its capital expenditure forecast for 2026 amid strong cloud growth, signaling increased investor scrutiny over infrastructure spending. The move has led analysts to speculate that other hyperscalers may follow suit in boosting their capex budgets. Alphabet's stock dropped nearly 7% following the report as investors reacted negatively to higher planned investments driven by AI expansion and data center construction. This shift marks a change from previous quarters, where rising capital spending was seen positively due to strong demand signals. However, with cash reserves shrinking and returns uncertain, skepticism is growing. Microsoft and Meta are set to release earnings this week, followed by Amazon on Thursday. Analysts expect Microsoft's capex forecast for 2026 could reach $190 billion or more, potentially leading to further stock volatility if it aligns with Alphabet’s trajectory.
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