According to an article in the US media, Alphabet's revenue fell short of analysts' expectations, and the market reaction was intense. The stock price plummeted 10% after the market. This performance, which fell short of expectations, reflects growing market concerns that the company will continue to invest hundreds of billions of dollars to build AI infrastructure. The market's reaction to Microsoft's earnings report is in contrast: as long as the company can prove that the relevant investment has paid off, the transaction capital will still give positive feedback. Microsoft announced that the cloud business revenue was better than expected, and the much-publicized Azure sales increased 48%. Furthermore, tech analyst Luke Lango pointed out that while Microsoft “achieved this achievement, capital expenditure was below the level of market concern: capital expenditure was 45.2 billion US dollars, and the market expected 45.9 billion US dollars. This is the exact opposite of why Meta was sold off last week.” The deep implications of this earnings season are becoming more and more clear: not only bond investors, but the stock market is also uneasy about the current investment scale of large cloud vendors. At least in the field of AI, a peak in capital expenditure may have already occurred. Read more: Lord, Let Me Hike Rates, Just Not Now: John Authers

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