Record corporate earnings have driven S&P 500 stock prices higher over recent quarters, with year-over-year earnings growth for the index estimated to reach 29% in Q3. The article warns that suppliers record AI infrastructure spending as revenue immediately, while the company making the investment depreciates the costs over several years, so expenses could rise later as earnings growth slows. Investor focus has shifted to return on investment and free cash flow: Alphabet reported negative free cash flow of over $9 billion in the quarter and kept its 2026 capex forecast at around $200 billion, while Amazon posted negative free cash flow for a second consecutive quarter with capex forecast at roughly $220 billion. The author says large tech companies still generate big revenue and profits, but the risk stays elevated if free cash flow remains negative, and argues long-term asset allocations can remain intact, citing the Vanguard S&P 500 ETF (VOO), the Vanguard Total Stock Market ETF (VTI) and the Invesco S&P 500 Equal Weight ETF (RSP).
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Related tickers and likely impact
SPY
• NeutralSPDR S&P 500 ETF
Relevance: low
| Market | US stocks |
|---|---|
| Sector | ETF |
| Close on 11/02/2026 | 752.10 |
| Change that session | -0.48% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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