Tech Brew Ride Home Earnings Overload
57 snips
Apr 30, 2026 Big Tech earnings and capital spending swings make for a volatile market day. Google Cloud and other cloud players show massive growth while Meta shocks investors by boosting capex. SoftBank plans an AI and robotics spinout aimed at massive data centers. Anthropic is reportedly exploring a towering funding round. Musk publicly criticizes his past support for AI ventures.
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Meta's AI Bet Spooked Investors
- Meta raised full-year CapEx to $125–$145B and investors punished the stock despite 33% revenue growth.
- Brian McCullough notes Wall Street wants returns, not just conviction in AI spending without clear monetization plans.
Alphabet Gets Rewarded For AI-Driven Cloud Growth
- Alphabet's Google Cloud grew 63% and backlog nearly doubled to $462B, lifting Alphabet's stock.
- The market rewarded heavy CapEx because Google showed demand via AI-driven cloud contracts and TPU hardware sales.
Hyperscalers Are Accelerating CapEx Rapidly
- The hyperscalers' Q1 CapEx totaled a record $130B, on pace for $725B in 2026, up 77% year-over-year.
- Brian highlights the scale: investors broadly accepted huge spending because AI and data center demand boosted revenue.