AI Infrastructure & Monetization Concerns Intensify After Alphabet Earnings, Microsoft Capex Miss

1. Tech is taking it on the chin. The reason? Alphabet shares are down more than 11% after a terrible earnings night. Microsoft’s evening was better. But shares up 3% not enough to dissuade sellers. Plus, Caterpillar and ServiceNow are disasters this morning. Tonight is another big one for Club earnings with Amazon and Intel out. Also this morning, bond yields are down as new inflation data, out before-the-bell, basically matched expectations but remained well above the Federal Reserve’s 2% targ

By Shashwat Chauhan and Utkarsh Hathi

Oct 29 (Reuters) - US stocks were on track to open lower on Thursday as Alphabet’s results rekindled worries about soaring AI costs, while investors assessed fresh inflation data following the Federal Reserve’s decision to keep interest rates unchanged.

Alphabet shares slid 11.5% in premarket trading, putting the company on track to lose more than $450 billion in market value if losses hold, after reporting disappointing search advertising results and a su

Investing.com -- Mizuho reiterated its Outperform rating and $460 price target on Alphabet and recommended buying the after-hours pullback following the tech giant’s mixed third-quarter results.

The stock is currently down around 11% premarket.

“We are buyers on the after-hours pullback in GOOGL shares, as we continue to see more aggregate EPS impact from upside to Cloud segment from TPUs than downside from lower search revenue,” analyst Lloyd Walmsley wrote.

Cloud revenue grew 103%, driven b

Investing.com -- Nebius stock slid 4.7% in morning trading as a disappointing capital expenditure report from Microsoft sent shockwaves through the AI infrastructure sector, pulling neocloud names sharply lower. Microsoft disclosed quarterly capex of $45.2 billion — up roughly 30% year-over-year but well short of the $50.7 billion analyst consensus — with the company attributing the gap partly to timing differences related to third-party capacity delivery and payment. Investors interpreted the m

Investing.com -- Nebius Group NV (NBIS) offers stronger growth and a cleaner balance sheet. CoreWeave Inc (CRWV) offers greater operating scale and a cheaper valuation, but carries substantially more leverage.

Financial metrics are as of Jun 30, 2026, unless otherwise stated. Prices and Fair Value Upside are as of Oct 29, 2026, 10:48 AM EDT.

CRWV has the operating lead. Its revenue rose from $229M in 2023 to $5.13B in 2025. EBITDA reached $2.44B in 2025.

NBIS has the acceleration lead. Revenu

Investing.com -- Situational Awareness, the hedge fund founded by Leopold Aschenbrenner, is seeking investor money to participate in a funding round for AI infrastructure startup Fluidstack that would value the company at $40 billion, Bloomberg News reported.

The proposed valuation is more than five times Fluidstack’s $7.5 billion valuation in a January round led by Situational Awareness, and roughly double its valuation just months ago.

The fundraising comes after Situational Awareness nearly

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Steve Eisman of “The Big Short” fame thinks the artificial intelligence trade is near a “tipping point,” but he’s not ready to outright bet against it yet.

“I’ve gotten much more conservative in my own portfolio. We have shorted against the box a whole bunch of our positions, so that our risk is much, much, much lower. But I’m not, like, net short any,” he told CNBC’s “Squawk Box” on Thursday.

Eisman’s primary concern pertains to the frontier algorithm models, which are exploi