Everyone is afraid that technology companies are spending too much. But Evercore analyst Mark Mahaney notes that a host of internet companies are starting to show that they are earning a return on the spending—making their stocks look compelling.
Capital spending in the hundreds of billions, and scary headlines about it have contributed to the market’s angst about companies such as Meta Platforms, Amazon.com, Alphabet, Microsoft, Oracle, and other prominent tech names. Their stock price performances have been spotty, with Oracle, Meta and Microsoft down for the year, versus the S&P 500’s 13% 2026 advance.