SpaceX's recent multi-billion-dollar debt issuance, following its blockbuster IPO, has unnerved equity investors, leading to a 13% stock drop. Analysts express concerns over diversification, execution risk tied to Starlink and Starship, high capital expenditure, and the company's significant net losses.
Asia sees a 20-year high in capital expenditures across sectors like defense, AI, and energy, driven by geopolitical crises and trade disputes. Morgan Stanley predicts a 'super cycle,' boosting economic power and jobs in the region.
Energy investors are heavily investing in AI, with hyperscalers' capital spending on AI projected to reach $725 billion by 2026, driving massive demand for electricity and potential investment opportunities in related energy infrastructure.
Microsoft forecast Azure cloud sales growth of 39-40% for fiscal Q4, beating the 36.7% Wall Street estimate, and announced $190 billion in planned capital spending for 2026, far exceeding analyst forecasts of $150 billion. The company reported 40% Azure revenue growth in Q3 and revealed Copilot has grown to 20 million users from 15 million in January. Microsoft also added Anthropic's Claude to its cloud services and restructured its OpenAI deal, losing exclusive reselling rights while securing a 20% revenue cut through 2030.
Microsoft reported Q3 2026 earnings with EPS of $4.27 adjusted vs $4.06 expected, and revenue of $82.89B vs $81.39B expected. The company issued 2026 capex guidance of $190B, significantly above the $154.6B consensus. Azure cloud revenue grew 40%, while AI annualized revenue reached $37B, up 123%. Stock is down 12% in 2026 following worst quarterly performance since 2008.
