CNBC Daily Open: Spending shock disappoints Wall Street

Jakub Porzycki | Nurphoto | Getty ImagesHello, this is Leonie Kidd coming to you from London. Brace yourself Big Tech...This quarter, it's clear that companies are going to be judged on their spending habits. Alphabet and Tesla have found out the hard way, with investors sending the stocks lower despite solid results. Meta, Microsoft, Amazon and Apple are all scheduled to release results over the coming days, with funding the AI boom now a key metric when assessing the balance sheet. What you need to know todayAlphabet and Tesla are testing Wall Street's patience and appetite for mega AI pending plans. Shares in the two heavyweights sank on Wednesday after their capex and spending plans spooked investors, despite a solid set of earnings for the quarter. For Google parent Alphabet, better-than-expected revenues were overshadowed by an expected capex spend of up to $205 billion for 2026. "The increase in the range is primarily due to an acceleration in the delivery of capacity to meet growing demand," Chief Financial Officer Anat Ashkenazi told analysts.Meanwhile, Tesla is concerning investors with skyrocketing costs. Free cash flow turned negative as Elon Musk looked to pivot the co...