Investors will scrutinize results from Alphabet, Microsoft and Amazon this week for evidence that artificial intelligence (AI) spending is generating enough revenue to support the costs of financing and building computing capacity.
Anthropic’s preliminary Form S-1, filed Oct. 26, reported $16.286 billion in revenue for the six months ended June 30, 2026, compared with $1.163 billion in the same period a year earlier. It also reported an $80.748 billion net loss for the period. The filing lists a $72.388 billion change in the fair value of convertible notes, derivative liabilities and simple agreements for future equity, and $131.651 billion in cash, cash equivalents and short-term investments as of June 30. It describes large fixed commitments for computing and infrastructure, while much of the company’s usage-based revenue is not covered by long-term contracts.
In an Oct. 24 note, Citadel Securities’ Nohshad Shah said higher yields were raising financing costs as investors sought clearer evidence that AI investment would pay off. He compared Meta’s third-quarter capital expenditure of $34.9 billion, including finance-lease principal payments, with $32.8 billion in operating cash flow. “Capex itself has become a two-sided risk,” Shah wrote.
CNBC columnist Michael Santoli argued Tuesday that the opportunity for AI-linked shares to recover was nearing a critical point. The S&P 500’s recent retreat took it back to a level reached June 1 after several months of limited movement, Santoli wrote. He also said Procter & Gamble’s price-to-earnings ratio had moved above Alphabet’s.
Alphabet plans to post its third-quarter results before a 4:30 p.m. ET call Wednesday, Oct. 28. Microsoft says it will release fiscal 2027 first-quarter results after the market closes that day. Amazon’s third-quarter results call is scheduled for 5 p.m. ET Thursday, Oct. 29.
