This year's projected capex ramp-up will all but wipe out free cash flow for Amazon, Google, and Meta, potentially forcing stock buyback cuts or more borrowing
Big tech's dramatic ramp-up in projected capital expenditures this year will all but wipe out free cash flow for Amazon, Google and Meta Platforms.
Alphabet, Amazon, Meta, and Microsoft forecast a combined ~$650B in 2026 capital expenditures, an estimated 60% YoY increase, driven by data center construction
Four of the biggest US technology companies together have forecast capital expenditures that will reach about $650 billion in 2026 …
Microsoft says its Q2 capital expenditures rose 66% YoY to $37.5B, exceeding analyst estimates for $36.2B; MSFT drops 10%+
Matt Day /Bloomberg:
Microsoft says capital expenditures for Q2 hit $37.5B, exceeding analyst estimates for $36.2B; MSFT drops 4%+ after hours
Matt Day /Bloomberg:
Amazon raises its forecast for capital expenditures to $125B in 2025, up from its earlier estimate of $118B, and says that number will likely increase in 2026
Amazon shares jumped more than 13% in extended trading Thursday after the company posted third-quarter earnings that exceeded expectations …
Meta expects 2025 capital expenditures to be between $66B and $72B, raising the low end of the company's previous estimate of $64B to $72B
Jonathan Vanian / CNBC :
Microsoft plans to invest $30B+ in capital expenditures in Q1, which would be its largest for a single quarter, after reporting $24.2B in capital spending in Q4
Todd Bishop / GeekWire : X: @andrewrsorkin X: Andrew Ross Sorkin / @andrewrsorkin : Context: MSFT said today that it would spend $120 billion on capital expenditures on AI, up from $80 billion. 🤯
Meta reports Q1 revenue up 16% YoY to $42.3B, vs. $41.4B est., net income up 35% to $16.6B, family daily active people up 6% to 3.43B on average for March 2025
and why simply isolating Chinese advertising spend was misguided... X: Roman Helmet Guy / @romanhelmetguy : Zuckerberg explaining how Meta is creating personalized AI friends to supplement your real o...
Alphabet expects 2025 capex of ~$75B, vs. ~$58B est., and reports Google Cloud Q4 revenue up 30% YoY to $11.96B, vs. $12.16B est.; GOOG drops 7%+
but investors aren't impressed Neil Rozenbaum / The Motley Fool : Google Earnings: What Went Wrong and Why I'm Buying More Georgia Butler / DatacenterDynamics : Google expects 2025 capex to surge to $...
Microsoft reports Q4 Intelligent Cloud revenue up 19% YoY to $28.52B, vs. $28.68B est., including Azure and other cloud services up 29% YoY
but there's a rare miss for Azure cloud results Kamya Pandey / MEDIANAMA : Microsoft Reports $64.7 Billion Revenue in Q4 FY24, Marking 15% Increase Yuvraj Malik / Reuters : Microsoft beats quarterly r...