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02-10

$Apple(AAPL)$  $Microsoft(MSFT)$  $Amazon.com(AMZN)$  $Alphabet(GOOG)$  $Meta Platforms, Inc.(META)$  

The recent earnings season highlights a strategic divide among the Magnificent Seven, Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOG), Meta (META), Tesla (TSLA), and NVIDIA (NVDA), as the "Cloud Titans" accelerate infrastructure spending while AAPL pursues an asset-light AI model, fueling two prevailing narratives

The Cloud Provider Logic (AMZN, GOOG, MSFT) : Capex is driven by rising B2B cloud demand, building a competitive moat that ensures long-term dominance and future revenue as the cloud market expands.

The Consumer Monetization "Ghost Story" (META, AAPL, TSLA) : With no clear "AI killer app", these companies must recoup massive AI investments from consumers, facing uncertainty as their Capex risks weighing on balance sheets.

As competitive AI spending becomes mandatory, the focus shifts to successful monetization as the steady innovation of Apple and the high-risk bets of other tech giants determine which companies emerge victorious。。。

Mag 7 Capex Recap: Apple Defies Trend! What's Your Pick?

@Tiger_comments：
This recent tech rout boils down to one word: Capex. While the AI hype is real, the spending is massive and the short-term monetization remains blurry. Combined with high valuations and a broader market correction, we’ve seen a "domino effect" across the board: $Alphabet(GOOG)$ & $Amazon.com(AMZN)$ : Earnings showed strong growth, but sharply higher Capex spooked investors. Google managed to claw back from a 7% intraday drop to close -0.6% lower, while Amazon plummeted roughly 10%. $Microsoft(MSFT)$ : Also mired in the Capex trap. The stock has shed about 15% over the past two weeks, slipping below the key $400 psychological level. $Meta Platforms, Inc.(META)$ & $Tesla Motors(TSLA)$ : Meta has given back almost all of last week’s gains, while Tesla took a sharp hit, sliding back under $400. $Apple(AAPL)$: While other giants retreated, Apple rallied about 10% over the same period, showing incredible relative strength. The 2026 Capex: Who’s More Anxious? The 2026 "Star Wars of Compute" is seeing total investment approach a staggering $600 billion. Let’s look at the Capex projections from the tech titans: 🥇 Amazon (~$200B): Absolutely insane spending. To defend the AWS throne, Bezos’s successors are going all-in. $200 billion? That’s not just an investment; it’s a statement that they will outspend everyone to stay #1. 🥈 Google (~$1,850B): Sundar Pichai is clearly feeling the heat, with spending effectively doubling. To prevent ChatGPT from taking their lunch, Google is not just spending—they’re signaling to Wall Street: "Demand is still outstripping our supply!" 🥉 Microsoft (~$150B+): The steady "gold-digging beast." At $37.5B per quarter, they are on track for $160B a year. After all, raising a "son" like OpenAI is an expensive endeavor. 😶 Meta ($115B - $135B): Remember when Zuck was mocked as a "spendthrift" for the Metaverse? Looking at these numbers now, Meta actually looks... disciplined? He’s currently the "lowest" spender among the giants (even if that "low" is still $130B+). There are two prevailing narratives regarding this Capex explosion: The Cloud Provider Logic (AMZN, GOOG, MSFT) Their infrastructure spending is backed by actual B2B customers. As long as the cloud market expands, this Capex builds a massive competitive moat. The Consumer Monetization "Ghost Story" (META, AAPL, TSLA) These companies must recoup their AI billions one or two dollars at a time from individual consumers. If the "AI killer app" for consumers doesn't materialize, this Capex becomes a heavy drag on the balance sheet. AI competition seems to make capex spending unavoidable — but in the end, who will actually monetize it? Which company are you most bullish on after recent earnings? Would you buy Apple at these levels, or try to bottom-fish some of the recently beaten-down names? Leave your comments to win tiger coins~
Mag 7 Capex Recap: Apple Defies Trend! What's Your Pick?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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