Alphabet (GOOG) is leading. Google Cloud exploded +63% year-over-year to $20B in Q1, with operating margins near 33% and a backlog that nearly doubled to over $460B. Shares surged post-earnings, silencing doubts about Google’s AI position as heavy capex ($180-190B guided) starts delivering high-margin growth.
Amazon (AMZN): AWS grew ~28% (fastest in 15 quarters) and delivered a strong operating income beat. Solid returns on ~$200B capex.
Meta (META): Strong ad revenue (+28-33%), but shares fell on higher capex guidance ($125-145B) as AI monetization remains more indirect.
Microsoft (MSFT): Azure growing well (~40%), yet the stock has lagged peers amid massive ~$190B spending and questions on return timing.
Apple continues with low capex intensity and strong services margins.Bottom Line: Among the big AI spenders, Alphabet currently shows the best bang for the buck
Amazon Falls 2.3% — Bezos Overhang or Scrutiny Over AI Spending?
Amazon −2.32% Tuesday, down on a day the S&P 500 and Dow both set records, still absorbing Monday evening's filing from Bezos to sell 15 million shares. Meanwhile the company is using Prime Video as its AI showcase — proof, it argues, that the spending has somewhere to go. The same week, its earnings call drew the sharpest questions yet on capex and returns. A $3 trillion market cap moved the debate from how big Amazon is to whether the money is well spent. One signal is a founder selling; the other is a narrative that hasn't cleared yet. Which one is actually informative?
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