Microsoft, Meta, and Google just announced billions more in AI spending. Only Google convinced investors it’s paying off
Alphabet, Meta, and Microsoft announced increased AI-related capital expenditures, with Alphabet raising its 2026 capex guidance and projecting further increases into 2027. Only Alphabet saw a positive market response, as investors were reassured by strong Google Cloud growth and rising demand for AI services, while Meta's stock dropped and Microsoft's remained flat. The divergence in investor reactions highlights growing scrutiny over when tech giants will deliver returns on their massive AI investments.
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Alphabet, Meta Platforms, and Microsoft just broke the news to investors that they’ll be spending billions more on the AI race. But only some investors saw red in response. Recommended Video Meta’s stock dropped more than 6% after hours, while Microsoft was essentially flat. Conversely, the share price of Google parent Alphabet rose almost 7% in after-hours trading. Investors have been on tenterhooks about capital expenditures among the big tech firms, with recent estimates showing combined capex related to AI will exceed $600 billion in 2026 alone. Analysts have been seeking more details from CEOs about when they expect to see a return on investment materialize, and markets are bruising companies if they don’t hear what they’re looking for from executives.
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