Shares of Microsoft and Alphabet have moved in different directions since their last earnings reports, as investors increasingly weigh how heavy AI spending is hitting corporate bottom lines. Both companies, along with major AI players, are set to report after the bell on Wednesday, and recent trading suggests investors give Microsoft the edge, according to a preview from Bloomberg Tech host Ed Ludlow.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
MSFTGOOGLAI investmentearnings
Open a keyword to see other news on the same topic.
Related tickers and likely impact
MSFT
▼ Likely negativeMicrosoft
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Systems Software |
| Market cap | $3.9T |
| Close on 10/27/2026 | 531.60 |
| Change that session | -0.19% |
GOOGL
▼ Likely negativeAlphabet Inc. (Class A)
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.0T |
| Close on 10/27/2026 | 320.57 |
| Change that session | +1.19% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Investing in AI beyond Nvidia, Microsoft, and Google earnings today
The hosts discuss where to invest in the AI trade beyond Nvidia (NVDA), what to watch in Microsoft (MSFT) and Alphabet (GOOGL, GOOG) earnings, and the news that OpenAI (OPAI.PVT) is buying Google chips.
- Big Tech Earnings Face a $600 Billion Question: Is AI Spending Paying Off?
U.S. stocks rose Monday, helped by enthusiasm for AI, but this week's earnings from Alphabet, Microsoft and Amazon will test whether that optimism holds under closer scrutiny of the technology's enormous costs. The three companies have nearly $1.7 trillion in combined backlog and plan to spend as much as $600 billion this year. Investors now want to know whether that spending is paying off.
- Google, Microsoft, and Amazon have to justify the AI spending boom this week
Google, Microsoft and Amazon report quarterly earnings this week, and the key question is how well their AI spending pays off compared with expected returns. These companies, which lead a week of results accounting for more than a third of S&P 500 earnings, face the same scrutiny Meta faced. Bank of America said hyperscalers' 2027 capex estimates have already been revised up by nearly 90% year to date. Competition for capital is intensifying as AI labs prepare large IPOs and businesses scale back AI spending and use cheaper models, making it more important to justify AI costs.
- Earnings from Google and Microsoft and a Fed rate decision: What to Watch
This market preview for Wednesday, October 28 highlights key events to watch: Alphabet (GOOG) and Microsoft (MSFT) are reporting quarterly results, with investors focused on the cost of financing AI investments. Microsoft is offering buyouts to upward of 60,000 eligible employees as it seeks to trim expenses amid its massive AI buildout. Outside of AI, FedEx, T-Mobile, Ford and Chipotle are expected to report after the market close. The Federal Reserve announces its policy decision at 2:00 p.m. Eastern, with rates expected to hold steady; one guest called it a hawkish hold despite hot inflation, while Fed Chair Warsh has neither endorsed nor pushed back on colleagues' signals that they want to wait for more data.
- Microsoft, Alphanet, Amazon Earnings Meet Fed Rate Decision: 3 Charts To Watch This Week
Microsoft, Alphabet and Amazon are set to report earnings this week, as investors look for more clues on where the AI trade is headed, while the Federal Reserve announces its policy decision on Wednesday. Koyfin data show Microsoft expected to post EPS of $4.72 and revenue of $90.75 billion, with focus on Azure growth after it guided to about 45% in July. Wall Street expects Amazon EPS of $1.96 on $202.20 billion in revenue, and Alphabet EPS of $2.97 on $127.83 billion, after raising its capital expenditure outlook in July. CME FedWatch shows a 90% probability that the Fed holds rates between 3.75% and 4.00%, with the two-year Treasury yield in focus. SK Hynix is also expected to report third-quarter revenue of $74.81 billion.
- Alphabet and Microsoft Earnings Will Put Investors’ AI Stress to the Test
Alphabet and Microsoft, which together make up 11.5% of the S&P 500, report earnings after the bell on Wednesday, with analysts expecting revenue growth of 25.2% and 16.7%. Investors want evidence that heavy AI infrastructure spending will produce profit and cash flow, a concern heightened by Gartner's forecast that AI revenue will be insufficient to support profitable returns on all planned AI capex, with $6 trillion of spending expected from 2027 to 2030. Neocloud providers face the most pressure because they rely heavily on debt, and Meta shares fell 7% Thursday and another 1% Friday after its AI spending turned free cash flow negative. Alphabet reported negative free cash flow of $5.9 billion in the second quarter, while Google Cloud revenue rose 82% to $24.8 billion, Azure grew 43% to $37.8 billion, and Microsoft 365 Copilot passed 30 million paid users. Yorkville Ives estimates hyperscalers hold a $2 trillion cloud backlog and will spend more than $800 billion on AI in 2026.
Related markets
Latest news
- Strategy Shareholders Approve Daily Dividends on Preferred Stock, With 99.3% in Favor
Strategy shareholders approved an amendment letting its four preferred stocks, STRF, STRC, STRK and STRD, accrue dividends every calendar day, including weekends and holidays, with 99.3% of votes cast in favor according to preliminary results. STRC will move first, with its first daily record date on November 1 and payment on November 2, while the other three switch over with a first record date on January 1 and payment on January 4, subject to filing amended terms for each stock. Record dates falling on non-trading days will be treated as the previous business day, so dividends are effectively grouped and paid on the next business day; for STRC, record dates rise from 24 a year to 365. STRC traded at $99.86 against its $100 par value, and last week Strategy paused Bitcoin purchases for the first time since mid-September to spend $204.9 million buying back STRC. Separately, Strategy faces possible removal from MSCI's widely tracked equity indexes, after MSCI finalized a rule treating companies whose balance sheets are dominated by a single asset as ineligible and will publish affected companies on November 11.
- Finance Minister: “Can Vietnam grow without FDI? The answer is simple: No way!”
At the Group 5 session on the draft amended Investment Law on 24/10, Finance Minister Ngô Văn Tuấn said Vietnam cannot reach double-digit growth without FDI. FDI disbursement reached about USD 21 billion in the first nine months of 2026, and the full-year target is at least USD 30 billion. Reaching double-digit growth would require total social investment of about 40% of GDP and an ICOR falling from 6.4 to 4.5–4.8, with 2026–2030 capital needs expected to be 2.67 times those of 2021–2025. He said incentives should shift toward high technology, R&D, and linkages between FDI firms and domestic businesses, as the global minimum tax reduces the effect of traditional tax incentives. As of August 2026, about 47,796 FDI projects were operating, with registered capital of roughly USD 561.6 billion.
- Untold story behind the rejected visits in 1999 and the SSC's passport to integration
Chairman Lê Văn Châu, the first head of the State Securities Commission (SSC), insisted on opening the market in 2000 despite calls to delay. With no companies ready to list, SSC staff began visiting firms in 1999, but many feared public disclosure, and the initial list of 14 companies dwindled to REE and SAM. The first trading session took place on 28/7/2000 at 45–47 Bến Chương Dương, with two stocks, trading three times a week, one call auction per day and a 2% price band, and the trading system was supported by Thailand. Châu also backed private sector participation from the start, which paved the way for Sài Gòn Securities Joint Stock Company (SSI), established on 30/12/1999. The article argues this was only the beginning, as the market needed more financial intermediaries and listed companies to grow.
- Surprising Profits at Bách Hóa Xanh in Q3
According to MWG's consolidated financial statements for Q3 2026, the Bách Hóa Xanh chain remained profitable in the quarter, so the tax losses carried forward it used to offset taxable income rose by about 563 billion VND to nearly 1,469 billion VND as of September 30, 2026. The article stresses that these tax losses are a measure for determining tax liabilities and are not equivalent to after-tax profit; as of end-September, the company still had about 3,504 billion VND in unconverted tax losses. For the first nine months, Bách Hóa Xanh posted revenue of about 45,900 billion VND, up nearly 34% year on year, equal to roughly 83% of its 2026 target of 55,500 billion VND, with growth driven mainly by fresh food and FMCG. The chain has 4,267 stores nationwide, and stores opened in 2026 recorded positive operating profit at store level after depreciation and logistics costs. At group level, MWG reported Q3 after-tax profit of 3,521 billion VND, up 97%, and nine-month after-tax profit of 9,634 billion VND, already exceeding its full-year profit target.
- Solana Foundation exec: Emerging markets embrace stablecoins first
Maya Caddle, payments lead at the Solana Foundation, says stablecoins have found their clearest use in emerging markets. Businesses there use them to free up idle capital, while consumers use them to reach US dollars.
- Why Chefs' Warehouse Stock Popped Then Dropped
Chefs' Warehouse (CHEF) fell 12% at the open despite reporting a third-quarter earnings beat, then briefly rose near 5% before giving back most of those gains. Adjusted earnings were $0.66 per share versus analysts' $0.58 estimate, and sales rose 11% year over year to $1.14 billion. Free cash flow for the year so far reached $115.7 million, 44% above reported net income and more than five times the year-earlier figure. CEO Christopher Pappas said momentum continued after the quarter, and management raised full-year guidance, with sales approaching $4.6 billion and full-year earnings implied at $2.55 per share, up 34%. The article suggests current profit may not fully justify a 43 price-to-earnings ratio, though the news is good for shareholders.
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.