The Main Points
- Alphabet reported quarterly results that beat expectations on the surface, but investors focused on rising capital expenditures.
- Negative free cash flow tied to AI infrastructure spending unsettled shareholders, sending the stock down sharply for the week.
- The Roundhill Magnificent Seven ETF fell more than 5% for the week following the report.
- Semiconductor stocks moved higher even as megacap tech names slid, highlighting a divide between AI spenders and AI suppliers.
- Amazon, Meta, and Microsoft are set to report their own results later this week, with investors watching for similar spending signals.