Name: Big Tech earnings to test AI rally as Alphabet takes lead | REUTERS
Uploaded: 2026-01-27T16:59:58.000Z
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Microsoft and Meta will kick off big tech earnings this week under pressure to prove their costly bets on AI can power another year of strong growth.

That's as resurgent Alphabet takes the lead in the high stakes race.

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The companies, along with Amazon, are expected to lift their AI spending this year by 30% to more than $500 billion.

It's an unprecedented outlay that will sharpen investor scrutiny.

Some have expressed doubts over whether Microsoft squandered a first mover advantage in AI it secured through its OpenAI investment.

Meta, too, is under pressure to show payoffs from its expensive push into superintelligence.

Both stocks declined more than 6% in the last three months of 2025, while Amazon saw a small 5% gain after its November deal with OpenAI signaled that the largest cloud computing provider in the US was no long behind on AI.

Alphabet shares, though, surged about 29% in that period.

It followed a strong reception of Google's latest Gemini 3 model.

The company also struck a deal to power Apple's revamped Siri.

LSEG data showed that in the October to December quarter, Google cloud revenue growth likely quickened to 35% from 33.5% in the previous three months.

But doubts linger about the real world benefits for the businesses adopting the technology and feeding into bubble fears that hounded the technology industry for much of last year.