Big Tech Earnings Are a No-Win Test as Investors Punish Both Capex Cuts and Hikes

Meta shares fell 7% on Oct. 22 after third-quarter capital spending of $34.9 billion exceeded the cash generated by its operations, despite revenue rising 26% and beating estimates. MetLife Investment Management strategist Drew Matus said investors are punishing companies for both cutting and increasing AI-related capital spending. Microsoft and Alphabet report Wednesday, followed by Amazon and Intel on Thursday; together they account for about 15% of the Nasdaq 100, which has fallen roughly 7% this month. Meta also announced nonvoting Class C stock, and Scotiabank noted management said a stock sale may be needed. The Federal Reserve, which raised rates in September to a 3.75%-4% range, meets Oct. 27-28 and announces its decision Wednesday before Microsoft and Alphabet report.