--- title: "Alphabet Soars, Meta Sinks As Big Tech Splits — ETFs Let You Pick The Right Side" type: "News" locale: "en" url: "https://longbridge.com/en/news/284802201.md" description: "Alphabet's stock surged while Meta's fell following the latest earnings from major tech companies, revealing divergent outcomes in AI investments. Microsoft and Alphabet were rewarded for their capex, showing strong revenue growth, while Amazon and Meta faced investor backlash due to declining free cash flow and infrastructure challenges. This split presents new opportunities for ETF investors, allowing for targeted trades rather than broad bets. The impact of AI spending is also affecting the supply chain, influencing semiconductor companies like NVIDIA and AMD." datetime: "2026-04-30T15:27:41.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284802201.md) - [en](https://longbridge.com/en/news/284802201.md) - [zh-HK](https://longbridge.com/zh-HK/news/284802201.md) generator: "portal-rs" --- # Alphabet Soars, Meta Sinks As Big Tech Splits — ETFs Let You Pick The Right Side The latest earnings from **Microsoft Corp** (NASDAQ:MSFT), **Meta Platforms Inc** (NASDAQ:META), **Amazon.com Inc** (NASDAQ:AMZN), and **Alphabet, Inc** (NASDAQ:GOOGL) (NASDAQ:GOOG) didn't just move stocks, they challenged the once-unified **"Magnificent Seven" trade.** For ETF investors, that split is becoming anopportunity. **• Direxion Daily MSFT Bear 1X ETF stock is among today’s top performers. Why is MSFD stock surging?** **Ryan Lee**, senior vice president at Direxion, summed it up best: the market is no longer rewarding AI ambition alone; it's demanding proof that massive spending can turn into revenue, fast. ## **One Theme, Four Different Outcomes** All four companies leaned heavily into AI. All four spent aggressively. That's where the similarities end. Microsoft reassured markets that earlier concerns around AI capacity were overblown. "Today's earnings were a test to see if this AI capacity hurdle was short-lived or a structural issue, and signs point to the former," Lee said, after the company delivered a strong cloud performance and triple-digit AI infrastructure growth. Alphabet also landed on the "rewarded" side of the trade. Its capex push is being embraced because it's backed by what Lee called a "$460 billion order backlog," alongside 22% revenue growth. In this case, spending is being interpreted as strength, not excess. **Read Also: The 'Prove It' Quarter: How Meta, Microsoft, Amazon, And Alphabet Backed AI Capex With Real Run Rates** Amazon? Same spending story, different reaction. "When a megacap name beats on most metrics but sells off… there is only one culprit in recent quarters: capex," Lee noted, as investors punished declining free cash flow tied to AI investments. Meta may be the most complex case. While still "the cleanest example of AI monetization," according to Lee, it's also hitting real-world limits. "The AI buildout has hit its first major physical wall," he said, pointing to server shortages and rising infrastructure costs. ## **ETFs Are No Longer Just Broad Bets** That divergence is showing up quickly in ETFs. Thursday mid-morning, Meta, Microsoft and Amazon were trading 10%, 4.5%, and 1.2% in the red, while Alphabet climbed 6%. Instead of treating Big Tech as a single trade, investors can use targeted tools to express short-term views. Leveraged single-stock ETFs — such as **Direxion Daily MSFT Bear 1X ETF** (NASDAQ:MSFD), **Direxion Daily AMZN Bear 1X ETF** (NASDAQ:AMZD), and **Direxion Daily META Bear 1X ETF** (NASDAQ:METD) — are turning earnings volatility into tactical trades rather than long-term bets. At the index level, products such as **Direxion Daily Magnificent 7 Bear 1X ETF** (NYSE:QQQD) are capturing the growing dispersion within the Magnificent Seven itself, something that barely existed a year ago when the group moved in near lockstep. ## **The Real Trade: Second-Order Effects** The bigger shift may be happening one layer deeper. AI capex isn't impacting Big Tech only. It is cascading into the supply chain. Lee pointed out that spending decisions from companies such as Meta and Alphabet have "immediate implications" for players such as **NVIDIA Corp** (NASDAQ:NVDA), **Broadcom Inc** (NASDAQ:AVGO) and **Advanced Micro Devices Inc** (NASDAQ:AMD). That's why semiconductor ETFs like **Direxion Daily Semiconductor Bull 3X ETF** (NYSE:SOXL), along with tech sector funds **Direxion Daily Technology Bear 3X Shares** (NYSE:TECS), are becoming key vehicles on Thursday for positioning around earnings. **Read Also: Meta's Massive AI Spending Shows No Signs Of Slowing As CFO Susan Li Warns: 'We Have Continued To Underestimate Our Compute Needs'** *Photo: Shutterstock* ### Related Stocks - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [METD.US](https://longbridge.com/en/quote/METD.US.md) - [CLOU.US](https://longbridge.com/en/quote/CLOU.US.md) - [IYW.US](https://longbridge.com/en/quote/IYW.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [MSFX.US](https://longbridge.com/en/quote/MSFX.US.md) - [AIQ.US](https://longbridge.com/en/quote/AIQ.US.md) - [VGT.US](https://longbridge.com/en/quote/VGT.US.md) - [AMUU.US](https://longbridge.com/en/quote/AMUU.US.md) - [METU.US](https://longbridge.com/en/quote/METU.US.md) - [QQQ.US](https://longbridge.com/en/quote/QQQ.US.md) - [SPY.US](https://longbridge.com/en/quote/SPY.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [AMDL.US](https://longbridge.com/en/quote/AMDL.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [GGLL.US](https://longbridge.com/en/quote/GGLL.US.md) - [RSPT.US](https://longbridge.com/en/quote/RSPT.US.md) - [VOO.US](https://longbridge.com/en/quote/VOO.US.md) - [FBL.US](https://longbridge.com/en/quote/FBL.US.md) - [MSFU.US](https://longbridge.com/en/quote/MSFU.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [XLK.US](https://longbridge.com/en/quote/XLK.US.md) - [IGPT.US](https://longbridge.com/en/quote/IGPT.US.md) - [GOOW.US](https://longbridge.com/en/quote/GOOW.US.md) - [SKYY.US](https://longbridge.com/en/quote/SKYY.US.md) - [BOTZ.US](https://longbridge.com/en/quote/BOTZ.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [ARTY.US](https://longbridge.com/en/quote/ARTY.US.md) - [MSFO.US](https://longbridge.com/en/quote/MSFO.US.md) - [IXN.US](https://longbridge.com/en/quote/IXN.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [MSFD.US](https://longbridge.com/en/quote/MSFD.US.md) - [AMZD.US](https://longbridge.com/en/quote/AMZD.US.md) - [QQQD.US](https://longbridge.com/en/quote/QQQD.US.md) - [AVGO.US](https://longbridge.com/en/quote/AVGO.US.md) - [TECS.US](https://longbridge.com/en/quote/TECS.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) ## Related News & Research - [Meta is asking some of its employees to become managers again in a new reorg](https://longbridge.com/en/news/298642956.md) - [Microsoft has new AI privacy rules for schools](https://longbridge.com/en/news/298487956.md) - [AMD: AI and data center growth, product ramps, and strong customer demand drive a bullish outlook](https://longbridge.com/en/news/298337880.md) - [Microsoft Signs ‘Iron-Clad’ AI Safety Deal — Schools Can Seek Damages if Student Data Is Misused](https://longbridge.com/en/news/298591179.md) - [Developers get 21x cheaper Muse Spark access if they let Meta train on their prompts](https://longbridge.com/en/news/297960240.md) --- > **Disclaimer: This article is for reference only and does not constitute any investment advice.**