Big Tech's earnings week turned into a referendum on AI spending on Friday, October 30. Amazon, Google and Microsoft are set to lose a combined $900 billion in market value after their quarterly results, according to the Financial Times, as investors recoil not from weak sales but from the sheer size of the cash burn attached to the AI infrastructure race. The Nasdaq Composite fell roughly 3% on Friday and the S&P 500 about 1.8%, capping the worst week for the Nasdaq since April.

The numbers behind the nerves are large: Amazon, Google, Microsoft and Meta are planning a combined $660 billion in capital expenditure in 2026, up 60% from $410 billion in 2025. Amazon alone guided 2026 capex to about $200 billion, roughly $50 billion more than expected, and its shares fell; Microsoft has dropped sharply since reporting even though cloud revenue rose, with data-center spending up 66%.

Alphabet has posted two straight quarters of negative free cash flow for the first time on record as AI spending outpaces revenue growth, and Meta recently disclosed its first negative-free-cash-flow quarter since 2012. Analysts quoted in the coverage say the burden is now on the hyperscalers to prove the spending earns attractive returns.