Alphabet (GOOGL) recently posted robust fourth-quarter and full-year results, with its annual revenue surpassing the $400 billion mark for the first time in its history. Growth accelerated across Alphabet’s core businesses, driven largely by artificial intelligence (AI)-led capabilities, while its backlog expanded meaningfully. While its strong Q4 performance should have propelled the stock higher, Alphabet’s share price instead lost steam. The primary reason is due to investor concern over capital expen ...

Alphabet (NASDAQ:GOOGL) announced $175 to $185 billion in capital expenditures for 2026, nearly doubling previous spending. ...

Core Viewpoint - Amazon's shares fell nearly 11% after announcing a $200 billion capital expenditure plan for 2026, which exceeded analyst expectations by about $50 billion, overshadowing a generally strong fourth quarter of 2025 [1][2] Financial Performance - Revenue for Q4 2025 increased 14% year over year to $213.39 billion, surpassing expectations of $211.33 billion [1] - Earnings per share (GAAP) rose 5% to $1.95, missing the estimate of $1.97 [1] - Operating income increased 18% year over year to $24.97 billion, beating the consensus forecast of $24.77 billion [1] - Amazon Web Services (AWS) revenue grew 23.6% year over year to $35.58 billion, exceeding estimates by approximately $514 million [2] - Operating margin for AWS was 35.03%, better than the consensus estimate of 33.98% despite a decline of 190 basis points year over year [2] Capital Expenditures - Amazon invested approximately $39.5 billion in capital expenditures in Q4 2025, exceeding the consensus estimate of $35 billion [2] - The total capital expenditures for the full year reached $128 billion, with expectations to increase to $200 billion in 2026, significantly higher than the $146.6 billion forecasted by analysts [2] Guidance and Market Reaction - For Q1 2026, Amazon expects net sales to increase by 11% to 15% year over year, projecting between $173.5 billion and $178.5 billion, which beats the consensus of $175.6 billion [2] - However, the expected operating income for Q1 2026 is between $16 billion and $21.5 billion, with a midpoint of $18.75 billion, which is a significant miss against the estimate of $22.18 billion [2] - The market's negative reaction is attributed to concerns over the high capital expenditures not translating into immediate profit increases [1][2]

Alphabet (NASDAQ: GOOGL) shares experienced a rare post-earnings "hiccup†on Wednesday, as investors grappled with a massive spike in projected capital expenditures and a slight miss in YouTube advert... ...

Financial Data and Key Metrics Changes - The company reported a record EBITDA of $2.7 billion for Q4 2025, surpassing the previous record of $2.6 billion in Q4 2024 [5][22] - Net income attributable to common unit holders was $1.6 billion, or $0.75 per common unit on a fully diluted basis for Q4 2025 [12] - Adjusted cash flow from operations grew 5% to $2.4 billion in Q4 2025, contributing to a record $8.7 billion for the full year [12][15] Business Line Data and Key Metrics Changes - The company experienced weaker pay market margins in 2025, with RGP and PGP spreads dropping from $0.14 per pound in Q4 2024 to $0.03 per pound in Q4 2025 [6][7] - The company is fully contracted on its ethane export terminals and processing trains, with expectations for modest growth in 2026 and double-digit growth in 2027 as new assets ramp up [8][19] Market Data and Key Metrics Changes - Crude oil prices averaged about $12 a barrel lower than in 2024, impacting price spreads and overall performance [6] - The company loaded between 350 and 360 million barrels across 744 ships in 2025, with expectations to export near 1.5 million barrels a day of NGLs by next year [9] Company Strategy and Development Direction - The company aims for modest adjusted EBITDA and cash flow growth in 2026, with a target of 10% growth in 2027 as new assets come online [19][22] - The partnership with ExxonMobil is seen as a significant opportunity, with plans for expansion and collaboration on various projects [9][72] Management's Comments on Operating Environment and Future Outlook - Management noted that the current operating environment is shaped by new market realities, including lower commodity prices and weaker spreads [6][19] - The company expects discretionary free cash flow to be around $1 billion in 2026, with a focus on buybacks and debt retirement [20][21] Other Important Information - The company repurchased approximately $50 million of its common units in Q4 2025, totaling about $300 million for the year [14] - Total capital investments were $1.3 billion in Q4 2025, with $1 billion allocated for growth capital projects [15][16] Q&A Session Summary Question: Outlook for 2026 and 2027 growth - Management indicated that growth in 2026 is expected to be at the lower end of the 3%-5% range, with a more favorable outlook for 2027 [30] Question: NGL export cadence and earnings contribution - Management explained that the Neches River Terminal's ramp-up will continue into 2026, with full utilization expected by the second quarter [32] Question: Impact of Waha prices on operations - Management clarified that low Waha prices benefit gas transport capacity, while higher prices allow for monetization through storage assets [35] Question: Producer customers' plans for 2026 - Management reported that Midland volumes are outperforming expectations, with a record number of well connections [37] Question: Negotiating power of larger E&Ps - Management expressed confidence in their ability to negotiate favorable contracts regardless of E&P size [42] Question: Buyback strategy and methodology - Management confirmed that 50%-60% of discretionary free cash flow is expected to be allocated towards buybacks [52] Question: Demand trends in international markets - Management noted resilient demand for U.S. LPG in new markets, indicating healthy long-term interest in export capacity [57] Question: Opportunities for collaboration with Exxon - Management highlighted ongoing collaboration with Exxon across multiple projects, emphasizing the potential for future growth [72]

Core Insights - Meta is expected to report its fourth-quarter results, with analysts predicting increased profits and revenues driven by its advertising business [1] - Options pricing indicates that traders anticipate a potential 6% movement in Meta's stock following the earnings report [1] - Analysts at Bank of America suggest that Meta's expense forecast for 2026 will be a key focus, with concerns about overspending on AI [1] Financial Expectations - Meta is projected to report earnings per share of $8.17, reflecting a nearly 21% year-over-year revenue increase to a record $58.43 billion [1] - All 21 analysts surveyed have issued "buy" recommendations for Meta's stock, with a mean target price of around $841, indicating a potential 25% upside from recent trading levels [1] Market Reactions - The anticipated earnings report could influence investor sentiment regarding Big Tech's willingness to support significant AI expenditures [1] - A milder-than-expected expense forecast could lead to stock gains, while a higher spending outlook may raise investor concerns [1]

Core Viewpoint - Tenaz Energy Corp. has announced its production and capital guidance for 2026, projecting significant growth in production and outlining a capital expenditure budget of $250 to $275 million, with expected production growth of approximately 115% year-over-year from 2025 [1][3]. Production and Capital Expenditure Guidance - The average production volume for 2026 is estimated to be between 19,500 to 22,500 barrels of oil equivalent per day (boe/d) [3]. - The capital expenditure (CAPEX) budget for 2026 is set at $250 to $275 million, which is aimed at supporting organic growth following two major acquisitions in 2025 [3][5]. - The company anticipates that the largest impact on production growth from the CAPEX program will be realized in 2027, with a potential production exit rate for 2026 as high as 27,000 boe/d [5]. Operational Plans - In the Dutch North Sea asset base, three jack-up drilling rigs are currently operational, with specific wells being drilled in the Joint Development Area and other locations [4]. - The Canadian program will consist of a three-well horizontal drilling initiative starting in Q1 2026, representing 4% of the total budget [7]. - The capital plan allocates approximately 80% of CAPEX to drilling operations, 10% to workover and optimization activities, and 10% to long-lead purchases and facilities projects [7]. Commodity Prices and Hedging Strategy - The company expects ongoing competition in securing LNG supply in Europe, particularly as reliance on Russian gas is projected to cease by the end of 2027 [8]. - As of now, Tenaz is 42% hedged for the full year 2026 on an oil-equivalent basis, with 50% of projected revenue for 2026 currently protected via hedging [9].

The first mountain was of course after co where inflation went up to almost 10% and now it's come down again to around 3%. The risk is that there's another mountain because you could have growth coming partly because of AI. There's also the one big beautiful bill.One of the important laws in the one big beautiful bill is that you could do immediate expensing of your capital expenditures if you're a company. Normally you have to do that over several years. If that's the case you should expect to see a boom c ...

Core Insights - Nabors Industries Ltd. (NBR) has significantly underperformed compared to its peers and relevant benchmarks, with a share price decline of 12.4% over the past year, while the Oil and Gas – Drilling sub-industry grew by 4.8% [1][8] - The company faces operational challenges, market volatility, and ineffective business strategies, impacting its market position [3] Financial Performance - NBR's adjusted EBITDA decreased from $248 million in Q2 2025 to $236 million in Q3 2025, indicating pressure on profitability despite divesting a high-margin business [4] - The company is projected to have breakeven adjusted free cash flow for the full year 2025, limiting its capacity for debt reduction or shareholder returns [10] Market Challenges - The U.S. Lower 48 drilling market is experiencing muted activity and ongoing pressure, with a decline in average rig count and daily margins due to labor inefficiencies and harsh drilling conditions [5] - Operations in Mexico are facing significant uncertainty, with potential suspensions of offshore platform rigs and collection issues from PEMEX, leading to cash flow challenges [6][9] Capital Expenditures and Debt Management - NBR's capital expenditures are high, estimated at $715-$725 million for 2025, with no expected decline in 2026, consuming cash and limiting financial flexibility [10] - The reduction in net debt to a decade low was primarily due to a one-time asset sale, raising questions about the sustainability of leverage improvement without further divestitures [11] Segment Performance - The Drilling Solutions segment's EBITDA showed only modest growth, with competitive pressures limiting pricing power in a challenging market [12] - The Rig Technologies segment reported a decline in EBITDA due to reduced demand for aftermarket offerings, reflecting a broader slowdown in capital equipment spending [16] Future Outlook - Management's guidance for Q4 2025 indicates stagnation in total EBITDA, with expectations of a decline in specific segments, suggesting a lack of operational momentum [15] - The company's dependence on the SANAD joint venture in Saudi Arabia raises concentration risk, as its success is tied to the capital spending plans of a single national oil company [14]

Capital Expenditures Overview - Capital expenditures reached $194 billion, driven by investments in servers, data centers, and network infrastructure [1] - Cash capex was $342 billion in Q3, with $899 billion spent year-to-date, primarily related to AWS investments [1] - Third quarter capex was $24 billion, with the vast majority invested in technical infrastructure [2] - Capital expenditures were $349 billion, driven by growing demand for cloud and AI offerings [3] Investment Allocation - Approximately 60% of technical infrastructure investment was in servers, and 40% in data centers and networking equipment [2] - Roughly half of the spend was on short-lived assets, primarily GPUs and CPUs [3] - The remaining spend was for long-lived assets supporting monetization for the next 15 years and beyond [3] Strategic Focus - The company will continue to make significant investments, especially in AI [2] - Investments support demand for AI and core services, custom silicon like tranium, and tech infrastructure [1] - Investments also support increasing Azure platform demand, growing first-party apps and AI solutions, and R&D [3]