Why all eyes are on Meta & Amazon earnings this week
Yahoo Finance Video
Mon, July 27, 2026 at 9:42 PM GMT+5:30
It’s a big week for tech earnings, with Amazon (AMZN), Apple (AAPL), Meta (META), and Microsoft (MSFT) all set to report quarterly results
Yahoo Finance Senior Reporter Brooke DiPalma and Argent Capital Management portfolio manager Jed Ellerbroek discuss their expectations for the upcoming reports
Yahoo Finance’s AlphaSpace is a premium investment platform that combines data, charting, news, analysis, and more to help retail investors understand markets
00:00Speaker A
I think all eyes really are on meta, but of course, uh Amazon too. They have a very surging uh cloud computing business that is requiring a lot of investment by them too
00:15Speaker B
Right, I was reading a note out this morning from Telsey Advisory Group that said in particular that it’s really focusing in on those high profit margin businesses like AWS and like its advertising business to really pull forward. While at the same time, that could be completely offset by all this AI related CapEx spending. As you can see on your screen for just how much it plans to spend when it comes to CapEx and I think that’s the big concern here, is that those build out of AI capabilities will offset any progress that it’s made elsewhere. Especially, think about it. Amazon started out as a consumer business and the company did have Amazon Prime day during this quarter and that was really expected to boost sales higher. And so there’s all these puts and takes when it comes to Amazon, but there is that worry on the street that that high AI-related spending will offset the the the success that it’s had from any prime day events.
01:03Speaker C
Really, like I mentioned, I am most worried about meta. I think they’re going to shock the market again with how much they not only plan for the balance of this year, uh in terms of CAPEX spending, but what they plan next year. What type of reaction do you think we’ll see in those stocks? And then what would be the influence to the broader S&P 500?
01:25Jed
I also think you’re right. Meta’s extremely aggressive in terms of data center capex spending. They don’t have a huge cloud computing unit to immediately monetize um that spending, the way that Amazon and Microsoft and Google do. Meta also has very strong momentum in its core digital advertising businesses. They’re growing really well, and it’s clear that the AI infrastructure is helping them monetize all the eyeballs their apps generate every day. I expect continued big capex increases like Google told us about last week. So yeah, expect a volatile week of earnings here from Microsoft, Meta and Amazon.
02:00Speaker C
Yeah, Jed, I I don’t know if you saw we were had a really awesome Yahoo Fince Alpha space chart up on the screen just right now. And if you go back to February of 2025, you can see it there on the screen. As meta has increased its CAPEX, I mean the stock has essentially been dead money for over a year. So I love that Alpha space chart. It really captures the essence of uh everything we’re talking about here on the show
