Tech Earnings — Google, Microsoft & Amazon: Buy the Dip or Brace for More Selling? – 10/29/26

October 29, 2026 · 57 min

Show notes

Big Tech is reporting BIG earnings, but Wall Street isn't necessarily liking what it sees!

Google, Microsoft and Amazon are at the center of one of the most important earnings weeks of the year. Billions of dollars are pouring into artificial intelligence, cloud computing and data centers.

But here's the billion-dollar question...

Are these companies building the future—or spending so much money that they're putting future profits at risk?

On today's TraderMerlin, we're digging into the latest earnings from Alphabet (GOOGL), Microsoft (MSFT) and the upcoming report from Amazon (AMZN) to determine whether the recent volatility represents a buying opportunity or a warning sign for the broader stock market.

And the stakes couldn't be higher!

Google's parent company, Alphabet, is facing renewed scrutiny over its massive AI investments and negative quarterly free cash flow. Microsoft continues expanding its cloud and AI businesses, but investors want to know when all that spending will translate into stronger returns.

Meanwhile, Amazon's earnings are on deck, with investors closely watching AWS growth, profitability and capital expenditures.

Because growing revenue is great. But what happens when spending grows even faster?

Here's what we'll discuss:

Google (GOOGL): Strong cloud growth, massive AI spending and negative free cash flow. Is the selloff justified?
Microsoft (MSFT): Can Azure and enterprise AI deliver enough growth to support Microsoft's valuation?
Amazon (AMZN): What should investors watch in Amazon's earnings, particularly AWS, margins and infrastructure spending?
The AI Spending Race: Are these companies investing wisely, or could we be witnessing another technology bubble?
Fundamental Valuations: Which company offers the most attractive opportunity based on earnings, cash flow and future growth?
Buying Opportunities: Are falling technology stocks becoming bargains, or could there be more downside ahead?
Market Impact: How much influence do these technology giants have on the S&P 500 and Nasdaq?

Plus, Today's Inflation & GDP Bombshell!

The latest economic data presents a fascinating dilemma for investors.

U.S. GDP grew at an annualized 3.4% in the third quarter, beating expectations and suggesting the economy remains surprisingly resilient.

But there's a catch!

PCE inflation climbed to 3.6% year over year, while core PCE reached 3.1%—both well above the Federal Reserve's 2% inflation target.

So we've got an economy that's growing faster than expected, but inflation that's moving in the wrong direction.

Does that mean more interest-rate hikes are coming? And what would that do to expensive technology stocks?

We'll examine how economic growth, inflation, Treasury yields and corporate earnings could shape the next major market move.

And here's the question I really want to explore:

Can Big Tech continue delivering extraordinary growth while spending hundreds of billions on AI infrastructure—or will investors eventually demand a much bigger return on that investment?

Because there's a major difference between owning a great company and buying a great stock at the right price!

Join me today for Tech Earnings on TraderMerlin!

We'll break down the numbers, compare the fundamentals and look for opportunities amid the market volatility.

Which would YOU buy right now: Google, Microsoft or Amazon? Or would you stay on the sidelines?

Drop your picks in the comments!

Sources & Further Reading

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