Big Tech Earnings Are a No-Win Test as Investors Punish Both Capex Cuts and Hikes
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Meta fell 7% as AI spending outran its cash flow, and MetLife’s Drew Matus says investors punish spending cuts too. Meta beat revenue estimates, with sales up 26%. Yet third-quarter capital expenditure (capex) of $34.9 billion topped operating cash flow, and shares fell on Oct. 22. What Do Investors Actually Want From AI Spending? Four more tech giants face the same test after Meta’s selloff . Microsoft and Alphabet report Wednesday, followed by Amazon and Intel on Thursday. Bloomberg’s hosts said the four make up about 15% of the Nasdaq 100, which has fallen roughly 7% this month. Matus said firms that cut capex get punished. Firms that raise it get the same treatment.
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