MY TAKEAWAY FROM YESTERDAY’S EARNINGS
$Meta Platforms, Inc.(META)$ concern is the spending ramp. CapEx for 2025 was raised to $71B and 2026 will be notably higher. Zuckerberg said explicitly that Meta will overbuild for the most optimistic scenario around superintelligence and the market is recalibrating to that shift.
Meta is transitioning from being the world’s biggest social media company to becoming an AI compute platform wrapped in social engagement. The short-term hit is higher expenses and margin compression while the long-term reward is durable AI infra, deeper engagement and a flywheel that compounds at global scale.
$Alphabet(GOOGL)$ had the cleanest quarter with Search at the focal point. Query growth accelerated and management said AI is expanding search behavior with AI Mode already has 75M U.S. users who are staying longer and making more queries.
Google is executing flawlessly through one of the hardest product transitions in its history. Three years ago the market feared chatbots would destroy Search but instead AI has become the catalyst for query expansion, ad growth and new engagement surfaces.
$Microsoft(MSFT)$ issue is timing of cash flow since Microsoft spent $35B in CapEx this quarter which is up 70% YoY and guided that 2026 will exceed 2025. Azure is growing so fast that the company cannot deploy quickly enough to meet usage. That means near-term revenue growth will not fully reflect the size of the backlog.
Microsoft is prioritizing compute for first-party products like Copilot and GitHub before allocating it to Azure enterprise workloads implying some opportunity cost in Azure’s short-term growth.
Across all three earnings the pattern is clear that the AI party is continuing with growth not slowing but the cost of scaling AI infra is climbing. Meta is buying compute to feed its ad engines. Google is monetizing AI through distribution. Microsoft is building the global compute supply both depend on.
Split-screen TV broadcast from Fox Business showing a man in a brown suit speaking at a podium labeled Meta with text overlays for research superintelligence and supervision alongside a man in a gray vest at a desk with microphone and another image of a smiling man in the background stock ticker displays NASDAQ values for META at 21.70 percent change and other companies like TSLA and Bank of Amer.
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