Big Tech Reports Earnings Next Week; GOOG Up 11% YTD Amid Questions on AI ROI, MSFT Down 18%

According to I/O Fund's Beth Kindig, Big Tech companies will report quarterly earnings next week starting July 21, with investors seeking proof that hundreds of billions in AI infrastructure spending are translating into profitability. Alphabet has led this year with an 11% gain, followed by Amazon at 8%, while Meta shares are down 2% and Microsoft has declined 18% year-to-date. Kindig noted the disparity reflects investor skepticism about AI monetization pace.

Wall Street will focus on cloud growth, AI software adoption, and advertising trends as evidence of payoff. Investors are watching whether Google Cloud sustains momentum, Azure reignites growth, and whether AI investments drive advertising gains at Meta and cloud expansion at AWS, according to Kindig.