Big Tech Capex Hits Critical Limit

Watch on YouTube ↗  |  April 29, 2026 at 17:17  |  4:10  |  Bloomberg Markets
Speakers
John Blackledge — Head of Research, Cowen

Summary

Big Tech earnings preview focusing on AI CapEx and cloud revenue growth. TD Cowen analyst John Blackledge argues CapEx guides for Amazon, Alphabet, and Meta are unlikely to be raised due to built-in wiggle room. He highlights that AWS and Google Cloud growth rates are critical make-or-break data points for the stocks tonight.

  • Analyst John Blackledge expects Amazon, Alphabet, and Meta to leave CapEx guides unchanged.
  • Companies gave themselves $40-50 billion wiggle room in CapEx forecasts.
  • AWS revenue growth expectations are high twenties to low 30%.
  • Google Cloud revenue growth expectations are mid-fifties to mid-60%.
  • Google Cloud signed more $1 billion deals last year than prior three years combined.
  • Headcount cuts and depreciation are complicating margin analysis.
  • Market is fragile; even meeting expectations may not be enough to avoid selloff.
Trade Ideas
John Blackledge Head of Research, Cowen 2:15
Cloud growth rates make-or-break stock reactions
AWS and Google Cloud revenue growth rates are make-or-break for Amazon and Alphabet stocks tonight. Investors expect high twenties to low 30% growth for AWS (from 24% in Q4) and mid-fifties to mid-60% for Google Cloud (from 48% year-over-year). Missing these expectations could trigger a selloff, while meeting or exceeding could support the stocks.
AMZN GOOGL MED
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This Bloomberg Markets video, published April 29, 2026, features John Blackledge discussing AMZN, GOOGL. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: John Blackledge  · Tickers: AMZN, GOOGL