"Alphabet's Q1 2026 earnings report did the heavy lifting. Google Cloud revenue grew 63% year over year to $20.03 billion, and the cloud backlog nearly doubled quarter on quarter to over $460 billion. That backlog gave investors a tangible AI revenue line to point to."
"Search, the franchise the market once feared AI would eat, instead accelerated. Google Search & Other revenue rose 19% to $60.4 billion, with CEO Sundar Pichai noting "queries at an all time high". Waymo also surpassed 500,000 fully autonomous rides per week."
"Meta Platforms' headline EPS of $10.44 versus $6.66 estimated included a sizable one-time benefit that investors discounted. A $8.03 billion one-time tax benefit tied to Treasury Notice 2026-7 added $3.13 per share to the result."
"The bigger issue was capex. Meta Platforms raised its full-year 2026 capex guide to $125 billion to $145 billion, up from the prior $115 billion to $135 billion range. Reality Labs posted another $4.03 billion operating loss, and total expe"
Meta Platforms shares fell over the past month after earnings that included a large one-time tax benefit but faced concerns about capital expenditures. Meta raised full-year 2026 capex guidance to $125 billion to $145 billion, up from $115 billion to $135 billion. Reality Labs posted another $4.03 billion operating loss, adding to pressure on profitability. Alphabet shares rose over the same period after strong Q1 2026 results. Google Cloud revenue grew 63% year over year to $20.03 billion, and cloud backlog nearly doubled quarter over quarter to over $460 billion. Search revenue rose 19% to $60.4 billion, with queries at an all-time high, and Waymo surpassed 500,000 fully autonomous rides per week.
#digital-advertising #ai-and-cloud-computing #earnings-and-financial-results #capital-expenditures #stock-performance
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