Summary

• Five of the Magnificent Seven—Microsoft, Alphabet, Amazon, Meta, and Apple—face a pivotal earnings week, with AI-driven growth and massive capex under scrutiny.
• Cloud growth rates for AWS, Azure, and Google Cloud are the market’s primary focus; acceleration validates AI infrastructure spending, while deceleration pressures the entire sector.
• Investors demand clear capex-to-revenue conversion and margin improvement; beat-and-raise guidance will be rewarded, while beat-and-hold or vague outlooks risk negative reactions.
• Short-term volatility is expected in a market priced for perfection, but the long-term AI super cycle thesis for big tech remains robust.

Welcome to Earnings Week

Earnings season has never felt this intense. Five of the Magnificent Seven will report earnings this week, and they'll be playing a game of big-risk poker as much as quarterly reporting. In reality, we've

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