Mega-cap tech earnings are driving market sentiment with significant divergence. Alphabet (GOOGL) shares plunged 10% after hours due to an EPS miss and a negative $9 billion cash flow, primarily attributed to surging AI infrastructure capital expenditures . This raises concerns about the funding capacity for hyperscalers in the AI race .
Conversely, Microsoft (MSFT) gained 2.9% after reporting nearly $19 billion in free cash flow, rewarding its ability to self-fund capex . Samsung (KS:005930) also fell 5% despite record earnings, as investors focused on semiconductor profit expectations and uncertainty over shareholder returns amidst high AI-driven memory demand and capex projections .
Nasdaq futures are down over 1% as markets await Amazon and Intel earnings .
Morning Bid: In the AI alphabet, cash is king
