Fears over AI-related debt have eased after a period of volatility, but more tests are coming, including Oracle's Investor Day and quarterly results from Alphabet and Amazon scheduled for Wednesday and Thursday. Meta's plan for a $95 billion stock offering helped bring down its credit-default swap spreads, which had risen after negative free cash flow in the third quarter, though Meta's CDS spread is still up 177% year to date and Amazon's is up 129%. According to FactSet consensus, Alphabet is expected to report third-quarter free cash flow of -$2.3 billion on $55.2 billion of capex, and Amazon -$9.9 billion on $58.7 billion, with analysts focused on capex guidance. Oracle has issued $117 billion in long-term debt and holds a BBB-1 rating from S&P, which CreditSights calls the most important investment-grade tech credit. S&P also noted that off-balance sheet commitments, such as data center leases and chip purchase obligations, are not necessarily treated as debt.
Summary written by Upside AI from the original article. Read the source for full details.
Keywords
AMZNGOOGLMETAAI investmentdefault riskdata centers
Open a keyword to see other news on the same topic.
Related tickers and likely impact
AMZN
▲ Likely positiveAmazon
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/26/2026 | 249.01 |
| Change that session | +0.41% |
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/26/2026 | 316.89 |
| Change that session | -1.04% |
QQQ
▲ Likely positiveInvesco QQQ Trust
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/26/2026 | 712.11 |
| Change that session | +1.09% |
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 10/26/2026 | 765.22 |
| Change that session | +0.69% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Data centers are now the largest financial bet in US history
- Data centers are now the largest financial bet in US history
- Big Tech Earnings Are a No-Win Test as Investors Punish Both Capex Cuts and Hikes
- Big tech is wobbling. Goldman Sachs says it's time to buy these 23 unloved stocks instead.
- Anthropic is leasing data centers to reduce reliance on Amazon, Google, others
Anthropic (ANTH.PVT) says it is increasingly leasing AI data centers under its Anthropic Direct initiative, to meet its large computing needs beyond capacity bought from cloud providers such as Amazon (AMZN) and Google (GOOG, GOOGL). According to its S-1 prospectus made public on Monday, this hybrid model could also bring long-term economic advantages. In November 2025, the company announced a $50 billion investment in which Fluidstack will build data centers in Texas and New York. Meanwhile, data centers face opposition from communities over air and noise pollution and water use, with towns and counties issuing moratoriums or bans, and New York imposing a one-year statewide moratorium. Anthropic lists further moratoriums as a key risk factor and says it is expanding capacity internationally to reduce concentration risk in the United States.
- Between Amazon and Alphabet One's Gotten Much More Bang for Their 200 Billion Bucks
Alphabet and Amazon are each investing roughly $200 billion in AI data centers, but the article finds Alphabet is converting that spending into growth faster. Google Cloud revenue jumped 82% to $24.77 billion in the second quarter, up from 63% growth in Q1, while AWS grew 36.7% to $42.2 billion with a $496 billion backlog, versus over $460 billion for Google Cloud in Q1. Alphabet funded its buildout by raising about $70 billion in equity and debt and suspending buybacks, and posted quarterly free cash flow of -$5.86 billion, while Amazon's trailing free cash flow was -$7.6 billion. The author leans toward Alphabet, citing faster cloud growth on a smaller quarterly capex bill and shares that rose 49.49% over the past year versus 19.95% for Amazon. Key watch items include whether Google Cloud keeps outpacing AWS and whether Amazon starts selling Trainium chips to outside customers.
Related markets
Latest news
- Google earnings checklist: Why YouTube, Search, & Cloud are key
Needham & Company analyst Laura Martin outlines the key drivers she will watch in Alphabet's (GOOG, GOOGL) earnings report, due after market close on Wednesday. She says search revenue is central, with consensus expecting 15% growth, an acceleration that would suggest AI is not eating the search business. Google Cloud grew 90% last quarter, and she wants to see it keep taking share from AWS while margins rise. Her note values YouTube at $340 billion, about 10% of Alphabet's total market cap, and says it has grown about 20% a year. In her view, proprietary data from Search and YouTube feeds Google's Gemini model and could give it more pricing power over time versus rivals such as Anthropic and OpenAI.
- A $20 AGNC Share Bought at Its 2008 IPO Has Paid $51 in Dividends. The Stock Trades Near $9.
The article notes that AGNC, a mortgage REIT, went public at $20 per share in 2008 and now trades below $9, yet has paid out $51.16 per share in dividends. Reinvesting those dividends would bring a total return of roughly 520%. The share price decline stems largely from constant dilution, as the share count rose from 15 million at the IPO to about 1.26 billion today to fund MBS purchases. The article says the 16.4% forward dividend yield can be sustained as long as the net interest spread, which has hovered around 2%, stays positive, and projects 2026 EPS of $1.56 versus a forward dividend of $1.44 per share. However, it notes that an S&P 500 index fund with reinvested dividends would have returned 669% over the same period, outperforming AGNC.
- Robinhood Misses Q3 Earnings as Crypto Revenue Rises and Prediction Market Bets Grow
Robinhood reported record third-quarter revenue of $1.42 billion, slightly below the roughly $1.43 billion expected, and earnings of $0.51 per share versus $0.55 expected. Event contracts revenue rose to $173 million from $156 million in the prior quarter, while crypto revenue rose to $120 million but fell 55% from a year earlier. Customers traded a record 16.4 billion event contracts, more than seven times a year earlier. Net income was $476 million, down 14% from a year earlier, and the quarter included a $67 million unrealized loss on Robinhood Ventures Fund I. The company narrowed its 2026 adjusted operating expense guidance to $2.675 billion to $2.75 billion, and shares slipped in after-hours trading.
- Treasury's Bessent sees crypto as America's next tool for keeping the U.S. dollar on top
U.S. Treasury Secretary Scott Bessent, speaking at Ripple's Swell conference, argued that digital assets could reinforce the dollar's global dominance as technological leadership becomes a bigger source of economic influence alongside military strength. He said Treasury could work with the SEC and CFTC to clarify crypto rules after Congress failed to pass the Clarity Act, and set guardrails against banks cutting off crypto businesses. Bessent noted that the GENIUS Act established federal stablecoin rules, that more than 90% of stablecoins are backed by U.S. dollars, and that issuers often hold U.S. government securities as reserves, which could become an important source of funding for the Treasury.
- Amazon has a Muse problem. Is a deal with OpenAI a solution?
Laura Martin of Needham & Company said Amazon's move to block Meta's Muse shopping agent from its site is a typical defense by an incumbent, since roughly 85% of e-commerce is done on Amazon's website. She suggested Amazon consider a joint venture with OpenAI, owned 50/50, giving OpenAI access to Amazon for purchases while Amazon handles fulfillment, and said Amazon could work with several consumer AI agents rather than only one. Needham rates Meta 'hold', and Martin argued Meta moved first because other AI companies are compute constrained and have no revenue from consumer agents, so they are not yet pursuing the business.
- Why Royal Caribbean Stock Climbed Today
Royal Caribbean shares rallied Tuesday after the cruise operator reported higher-than-expected profit and raised its full-year earnings forecast. Third-quarter revenue rose 9% year over year to $5.6 billion. Adjusted net income climbed 12% to $1.8 billion, or $6.57 per share, beating analysts' estimate of $6.38. The company now expects full-year adjusted EPS of $17.85 to $17.95, up from $17.73 to $17.87. In September it agreed to acquire a 50% stake in Sandals and Beaches Resorts, giving access to 18 Caribbean resorts with more under construction. CEO Jason Liberty said 2027 bookings are pacing ahead of historical levels at higher rates.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.