--- title: "Microsoft and Amazon Won the AI Spending Week. Alphabet, Meta, and Oracle Didn't. Now What?" type: "News" locale: "en" url: "https://longbridge.com/en/news/294695963.md" description: "Tech giants' stock movements following quarterly reports were driven more by AI capital expenditure plans than earnings. Microsoft and Amazon saw gains as investors approved their data center investments, while Alphabet, Meta, and Oracle faced declines due to concerns over spending levels and strategic shifts. The article analyzes the differing capex figures and accounting nuances among these hyperscalers to understand the sustainability of their AI build-outs." datetime: "2026-08-03T12:46:45.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/294695963.md) - [en](https://longbridge.com/en/news/294695963.md) - [zh-HK](https://longbridge.com/zh-HK/news/294695963.md) --- # Microsoft and Amazon Won the AI Spending Week. Alphabet, Meta, and Oracle Didn't. Now What? The hyperscaler giants reported quarterly results over the last few weeks. Despite consistently impressive earnings and revenues, the market reactions were mixed. Capital expenditure (capex) planning was a better explanation for the stock moves than the usual earnings and revenue jumps. - **Microsoft** (MSFT +3.02%) and **Amazon** (AMZN +15.32%) rose 18% and 10%, respectively, over the week of July 26-31. Investors applauded their approach to artificial intelligence data center investments. - **Alphabet** (GOOG +6.88%) (GOOGL +6.73%) dipped as much as 4% after its July 22 report but has since returned to positive territory over the last two weeks. The Google parent's capex plans were less comforting. - **Meta Platforms** (META +3.28%) dipped nearly 10% and is still down 6% over its reporting week. The company is late to the hyperscaler game, but leaning into its infrastructure investments with gusto. - **Oracle** (ORCL +1.81%) is a special case with a non-standard fiscal year, so its latest report inspired a 14% price drop in the second week of June. In total, stock prices are down 35% since the Q4 2026 report. The database giant is making a sharp strategic turn, and investors worry about massive costs. ![An industrial construction site.](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84ODE3NDIvY29uc3RydWN0aW9uLXNpdGUtd2l0aC1jcmFuZS0yMjQ1ODgyMTM0LmpwZyZ3PTM4NDA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) Image source: Getty Images. How different are these tech titans' AI investments, though? Their expenses look similar at first glance, but where will the money come from? Who can sustain this pace, and who is quietly bending the balance sheet, or the cash flow statement, to make it look easier than it is? So I'm taking a deep look at the hyperscaler data center investments. Keep an eye on this space for further analysis and thematic comparisons. I'll confess a selfish motive too. Half the reason to lay all five side by side is that I expect to understand the whole AI build-out story much better by the end than I did at the start. Learn it with me, starting with a simple overview of the basic facts. ## Headline figures and caveats **Company** **Last Quarter's Capex** **Full-Year Capex Guidance** Microsoft $41.0 billion About $175 billion, calendar 2026 Amazon $53.1 billion About $220 billion Alphabet $44.9 billion $195 billion to $205 billion Meta $31.1 billion $130 billion to $145 billion Oracle $16.5 billion About $70 billion, fiscal 2027 Data source: Company filings and earnings calls. There are a few asterisks to this handy table. Apples to apples? Sometimes, the best I can do is a sweet Honeycrisp to a tart Bartlett pear. They're in neighboring orchards, but they definitely don't crunch the same. Alphabet, Meta, and Amazon sync their fiscal years with the standard calendar on your wall. When they refer to the current or next year, it's pretty clear what period they're talking about. Expand ![Microsoft Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL01TRlQucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NASDAQ: MSFT Microsoft Today's Change (3.02%) $13.62 Current Price $464.72 ### Key Data Points Market Cap $3.5TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $449.33 - $466.84 52wk Range $349.20 - $553.72 Volume 1M Avg Vol 40.2M Gross Margin 67.94% Dividend Yield 0.77% The others are more complicated. Oracle's fiscal year ends on May 31 and Microsoft's on June 30. It's important to note whether these companies are projecting fiscal-year or calendar-year results. You may have seen a larger estimate of roughly $255 billion for Microsoft's capex plans, but that's for the 2027 fiscal year. The basic calendar year is better for apples-to-apples comparisons. Furthermore, that's the only period for which Microsoft's management actually gave a capital spending target in the Q4 2026 earnings call. Oracle's ~$70 billion is net of customer prepayments; gross guidance is $90 billion to $95 billion. The smaller figure doesn't indicate a smaller build. It's cash Oracle's AI computing customers pay up front for their long-term contracts. Meta's $130 billion to $145 billion specifically includes principal payments on finance leases, so it isn't strictly comparable to peers that report property and equipment purchases. By the way, Microsoft is shifting more of its future data center leases from finance to operating, which moves some of the costs from cash flow considerations to operating expenses. At the same time, Amazon's global e-commerce system plays a significant part in the company's capital expenses. A good chunk of Amazon's expenses are for warehouses and delivery gear, not memory chips and data center cooling. Everyone has non-AI cash costs, but Amazon's are large. Expand ![Amazon Stock Quote](https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vYXJ0L2NvbXBhbnlsb2dvcy9tYXJrL0FNWk4ucG5nJnc9MTI4?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## NASDAQ: AMZN Amazon Today's Change (15.32%) $36.08 Current Price $271.58 ### Key Data Points Market Cap $2.9TMarket cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. Day's Range $262.01 - $273.23 52wk Range $196.00 - $278.56 Volume 1.6M Avg Vol 49.5M Gross Margin 50.77% ## Where this series is headed Those are the headline figures you see all over the place, including clarifications that often aren't included. It's the concrete foundation for the real work of my little series. Assuming I don't run out of coffee and motivation, here's the plan: - First, follow the money. Every company can point to a capex figure, but the interesting part is where those dollars come from. - Second, check the financial shock absorbers. Some of these giants are sitting on mountains of net cash; at least one is digging a sizable net-debt hole. - Third, ask what the spending buys. Contracted backlogs hint at the payoff, but a backlog is not a fully paid receipt. - Then comes the payoff, and the whole reason I'm doing this: ranking the five American hyperscalers from most to least sustainable. Time to warm up the espresso machine. ### Related Stocks - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [ORCL.US](https://longbridge.com/en/quote/ORCL.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [META.US](https://longbridge.com/en/quote/META.US.md) - [GGLS.US](https://longbridge.com/en/quote/GGLS.US.md) - [METU.US](https://longbridge.com/en/quote/METU.US.md) - [MEIB.US](https://longbridge.com/en/quote/MEIB.US.md) - [AMZG.US](https://longbridge.com/en/quote/AMZG.US.md) - [METG.US](https://longbridge.com/en/quote/METG.US.md) - [GOIB.US](https://longbridge.com/en/quote/GOIB.US.md) - [AMZW.US](https://longbridge.com/en/quote/AMZW.US.md) - [AMZZ.US](https://longbridge.com/en/quote/AMZZ.US.md) - [ORAC.US](https://longbridge.com/en/quote/ORAC.US.md) - [ORCX.US](https://longbridge.com/en/quote/ORCX.US.md) - [MSFX.US](https://longbridge.com/en/quote/MSFX.US.md) - [ORCS.US](https://longbridge.com/en/quote/ORCS.US.md) - [AMZD.US](https://longbridge.com/en/quote/AMZD.US.md) - [GGLL.US](https://longbridge.com/en/quote/GGLL.US.md) - [MSFY.US](https://longbridge.com/en/quote/MSFY.US.md) - [ORCZ.US](https://longbridge.com/en/quote/ORCZ.US.md) - [MSFL.US](https://longbridge.com/en/quote/MSFL.US.md) - [MSFU.US](https://longbridge.com/en/quote/MSFU.US.md) - [FBL.US](https://longbridge.com/en/quote/FBL.US.md) - [GOOW.US](https://longbridge.com/en/quote/GOOW.US.md) - [METD.US](https://longbridge.com/en/quote/METD.US.md) - [MSFD.US](https://longbridge.com/en/quote/MSFD.US.md) - [AMZU.US](https://longbridge.com/en/quote/AMZU.US.md) - [ORCU.US](https://longbridge.com/en/quote/ORCU.US.md) - [MSFO.US](https://longbridge.com/en/quote/MSFO.US.md) - [GOOY.US](https://longbridge.com/en/quote/GOOY.US.md) - [GOU.US](https://longbridge.com/en/quote/GOU.US.md) - [GOOX.US](https://longbridge.com/en/quote/GOOX.US.md) - [GOOP.US](https://longbridge.com/en/quote/GOOP.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [MSFW.US](https://longbridge.com/en/quote/MSFW.US.md) - [AMZO.US](https://longbridge.com/en/quote/AMZO.US.md) - [AMZY.US](https://longbridge.com/en/quote/AMZY.US.md) - [AZYY.US](https://longbridge.com/en/quote/AZYY.US.md) - [AMZP.US](https://longbridge.com/en/quote/AMZP.US.md) - [FBY.US](https://longbridge.com/en/quote/FBY.US.md) - [FBYY.US](https://longbridge.com/en/quote/FBYY.US.md) - [METW.US](https://longbridge.com/en/quote/METW.US.md) - [ORCL-D.US](https://longbridge.com/en/quote/ORCL-D.US.md) ## Related News & Research - [Meta Q2 earnings miss. Stock falls.](https://longbridge.com/en/news/294255346.md) - [Meta's future AI data center lease obligations swell to over a quarter trillion dollars](https://longbridge.com/en/news/294389887.md) - [Europe’s AI labeling and transparency rules are now in effect](https://longbridge.com/en/news/294724706.md) - [Meta Platforms Q2 Preview: Key Items to Watch to Turn Stock Around After Earnings](https://longbridge.com/en/news/294099452.md) - [Microsoft blinked a little in the AI capex race. Wall Street loved it.](https://longbridge.com/en/news/294492829.md)