Big Tech companies like Amazon, Microsoft, Alphabet, and Meta showed strong revenue growth in Q3. However, their stocks have dropped as investors worry about negative free cash flow and heavy spending on AI infrastructure. This raises concerns about future returns and capital efficiency, with risks that returns on invested capital may decline amid intense AI competition and high capital costs. The analyst prefers defensive tech stocks like Apple and Microsoft and advises diversification rather than concentrated AI bets due to market skepticism.
Following the concerns about heavy AI spending and capital efficiency, major tech stocks are showing declines on Pluang as of Oct 31, 2026 04:51 WIB. Amazon is down 1.66% at USD 239.75, Microsoft has fallen 1.46% to USD 522.38, and Meta dropped 2.04% to USD 611.80. Apple, favored for its defensive qualities, also saw a 1.21% decrease to USD 344.69, reflecting cautious sentiment among investors on the platform.
Amazon's AWS segment saw a 39% year-over-year revenue increase in Q3, with operating income up 55%, driving strong core profitability despite Amazon missing top and bottom line expectations. Overall operating income grew 61% year-over-year, outpacing...
Amazon.com, Inc. is currently undervalued by about 25% based on discounted earnings, indicating potential for long-term gains. However, heavy investment in AI infrastructure has caused free cash flow to turn deeply negative and shifted the company fr...
Amazon is transforming into a high-growth, high-margin cloud computing provider, led by its AWS segment which saw a 39% revenue increase and margin expansion to 38.7%. Management expects AWS growth to exceed 40% in 2027 and 2028, signaling strong fut...
Amazon.com remains a Buy due to strong growth in its AWS cloud business, which saw 39.3% revenue growth and a 38.7% margin. The retail and advertising segments also showed positive performance, with North American operating income rising and advertis...
Intel, Alphabet (Google), Amazon, and Reddit have revealed challenges to the optimistic AI and large language model (LLM) growth narrative. Intel faces declining revenues, margin pressure, and high capital expenditure, trading at unsustainable valuat...
