Mag 7 Members Report Strong Earnings, Double Down on CapEx

Group 1 - Alphabet plans to increase its capital expenditure (capex) by 47% this year, targeting a budget of $75 billion, while Meta and Microsoft plan to spend $60 billion and $80 billion respectively [3][6] - Despite Alphabet's Q4 earnings increasing by 28.3% year-over-year to $26.5 billion, the market reacted negatively, primarily due to concerns over trends in the company's business and issues in Microsoft's cloud segment [3][5][4] - The Mag 7 companies, including Alphabet, Microsoft, and Meta, are highly profitable and continue to show impressive growth, with total earnings for the Mag 7 expected to rise by 26.1% in Q4 compared to the previous year [5][9] Group 2 - The Tech sector has been a significant growth driver, with Q4 earnings expected to increase by 23.3% year-over-year, marking the sixth consecutive quarter of double-digit earnings growth [10][11] - Overall, S&P 500 earnings for Q4 are projected to rise by 11.9% from the same period last year, with 80% of companies beating EPS estimates [7][15] - The earnings outlook for the Tech sector is steadily improving, with revisions indicating strong growth potential for both Q4 and the full year 2025 [12][20]