Alphabet pops, Meta tanks as each company raises capex spend

Alphabet shares jumped about 5% after Q1 results and a raised 2026 capex outlook, while Meta plunged roughly 10% despite beating revenue and earnings, as investors fretted over its much larger AI-related spending. Alphabet raised full-year capex to $180–$190 billion and highlighted 63% YoY Google Cloud revenue growth; Meta raised its capex range to $125–$145 billion, citing higher component prices and data-center costs. Microsoft and Amazon’s large cloud businesses and their own capex plans were cited as advantages in monetizing AI investment, and JPMorgan downgraded Meta amid concerns about its path to returns. The moves underscore market differentiation among AI spenders: investors rewarded Alphabet’s cloud-led case and punished perceived riskier capex at Meta.