Home

Market Outlook

Today's Market

Summary

Hyperscalers like Alphabet, Microsoft, Amazon, and Meta are aggressively increasing capex to meet accelerating demand, sacrificing near-term free cash flow.

Despite faster cloud business growth, the market currently prioritizes free cash flow over fundamental expansion, weighing on valuations.

I expect capex growth to reach a turning point by mid-2027, potentially easing market concerns and supporting stock performance.

Current market sentiment is 'selling strength,' awaiting visible capex moderation before rewarding underlying growth.

alexsl/iStock Unreleased via Getty Images

Overview

The latest earnings season gave us more reassurance that the hyperscalers can effectively convert capex spending into higher earnings growth.…