Alphabet, Microsoft and Amazon report this week, with about US$600 billion of spending to explain

Alphabet and Microsoft report after Wednesday's close in New York, and Amazon follows on Thursday, which is Thursday and Friday morning here. Analysts expect earnings of US$2.94 a share from Alphabet, US$4.71 from Microsoft and US$2.01 from Amazon.

Why do three results matter this much? The biggest companies have been dragging the index around. Over the two weeks to Friday, the S&P 500 fell 2.4% while the median stock in it rose 4.0%, according to Dave Johnson of the Trading Time Machine newsletter.

He found only two ten-day stretches since 1990 that were more lopsided, both in 2000. The ten biggest companies make up about 42% of the index.

Chart: Amazon's capital spending hit US$131.8bn in 2025. Cash spent on property and equipment each year, in US$bn, 2016 to 2025; Microsoft's years end in June. Alphabet expects to spend US$195bn to US$205bn in 2026. — This story’s chart of the day: the numbers, the dark version and the animated version are on its own page. The chart’s page →

The spending is the big number. Alphabet expects to put US$195 billion to US$205 billion into equipment and buildings this year. Amazon plans about US$220 billion and Microsoft US$175 billion, most of it on data centres.

That money is meant to come back through the cloud. Google Cloud's revenue rose 82% in the June quarter, and Amazon Web Services grew 37%. Microsoft expects 45% growth from Azure in the September quarter.

The yardstick

cloud growth against the spending bill. Meta raised its spending forecast last week, and its shares fell with the chipmakers. I'd want to see cloud revenue at these three growing faster than their spending.

This story ran in Show Us the Money Monday 26 October’s edition, with the market snapshot, the other two stories, the numbers and the week ahead. Read the whole edition →

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Friday 13 November Jensen Huang resigned on Thursday morning and Nvidia closed down 4.34%
Tuesday 3 November Apple set a September-quarter record in John Ternus's first results as chief executive
Monday 2 November Apple reports on Tuesday morning, and memory chip prices are the line to watch

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