Microsoft beat. Alphabet missed. Two AI giants reported on the same night — and the market picked a winner fast. Add a Fed decision with two dissents for a rate hike, and Oct 28 was one of the most important sessions of the earnings season.
🥊 Big Tech Showdown: Microsoft vs. Alphabet
| Microsoft (MSFT) | Alphabet (GOOGL) | |
|---|---|---|
| Revenue | $92.3B vs est. $90.7B ✅ BEAT | $127.6B vs est. $128.2B ❌ MISS |
| EPS | $4.89 vs est. $4.73 ✅ BEAT | $2.67 vs est. $3.02 ❌ MISS |
| Cloud growth | Azure +48% | Google Cloud +103% |
| AI capex | $45.2B | $51.4B |
| Free cash flow | $18.6B | −$9.1B |
| After hours | +4% 🟢 | −10% 🔴 |
The AI spending test: Alphabet spent more on AI than it brought in as free cash flow. Microsoft didn’t. Even with Google Cloud more than doubling, investors punished the miss and the cash burn.
🏛️ The Fed Held — But Not Everyone Agreed
The Fed kept rates unchanged at 3.75%–4.00% in a 10-2 vote, with Cook and Hammack voting for a hike. Futures now price roughly ~85% odds of a December hike.
📊 US Indexes at the Close
- Dow Jones: 52,475.10 (+0.19%)
- S&P 500: 7,743.98 (+0.28%)
- Nasdaq: 26,549.85 (+0.27%)
- Russell 2000: 2,830.51 (+0.41%)
- VIX: 16.91 (−3.5%) — nerves cooled
💎 Magnificent 7 (Regular Session)
GOOGL +1.34% · AMZN +0.59% · MSFT −0.06% · TSLA −0.80% · AAPL −0.94% · NVDA −1.17% · META −1.24%
🔮 Next Up: Can Amazon Pass the AI Test?
Options-implied moves for Thursday, Oct 29: Amazon ±7.7% (after close), Intel ±10.7% (after close), Eli Lilly ±6.9% (pre-market), Caterpillar ±7.8% (pre-market). Amazon: beat or miss? Drop your call in the comments 👇
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Educational content, not financial advice. Data: Oct 28, 2026 closes; after-hours moves as reported.
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