The Mag 7 earnings season kicks off tomorrow, and the market is closely watching one thing—capital expenditures!

Investors' attention to capital expenditure guidance is at an all-time high. Goldman Sachs believes that this earnings season will ultimately revolve around one core question: "Who is cutting spending, and who is increasing spending?" Morgan Stanley expects Meta to announce a capital expenditure guidance of approximately $120 billion for 2026, while Microsoft, Google, and Amazon are expected to be $140 billion, $150 billion, and $175 billion, respectively. In addition, investor sentiment towards Meta has clearly deteriorated, while for Amazon and Google, the growth rate of cloud business is key