> Alphabet reported property-and-equipment purchases of about $51.4B, while analysts expected approximately $55.1B. Microsoft reported capex and finance leases of about $45.2B, while analysts were expecting around $50.7B. These were significant misses.
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> Caterpillar inventories increased to $22.2 billion at the end of September […] The 22% increase in inventory signals future demand weakness or overproduction, and the reason is lower AI capex, as reported by Alphabet and Microsoft.
Maybe I’m not getting it. But it’s alphabet and Microsoft spending less than someone external said they should spend, not what they themselves said they would spend. How is that a miss?
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> […]
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> Caterpillar inventories increased to $22.2 billion at the end of September […] The 22% increase in inventory signals future demand weakness or overproduction, and the reason is lower AI capex, as reported by Alphabet and Microsoft.
Maybe I’m not getting it. But it’s alphabet and Microsoft spending less than someone external said they should spend, not what they themselves said they would spend. How is that a miss?