SUCCESS

The biggest names in tech spent the final week of October explaining how they plan to keep paying for AI. From Elon Musk to Andy Jassy, Magnificent Seven leaders used earnings calls and public remarks to talk about spending, cash flow and who might get left behind. The talk was less about what AI can do and more about who can afford it.

Investors did not like everything they heard, and some of them made that clear in a hurry. Alphabet suffered a sharp post-earnings sell-off, falling more than 8% in after-hours trading following its October 28 earnings release. The growth is real. So is the bill.

Elon Musk sees a shakeout coming for neoclouds

Elon Musk set the tone on October 25 with a warning for neoclouds, the companies that rent out AI computing power. He wrote on X that more than 200 of them face “guppy-level death and consolidation,” with few likely to survive.

Also read: Elon Musk’s latest move brings good news for Nvidia investors

His argument comes down to debt. Lenders, he said, are wary of backing companies that make nearly all their money from AI data centers. SpaceX carries about $40 billion in debt to buy GPUs, but it also earns money from Starlink and rocket launches. In his view, that outside business is what makes the difference.

Some traders read the remarks as a sign that Musk might go bargain hunting among beaten-down neocloud stocks. He shut that idea down quickly, saying SpaceX was not looking to buy any of them and calling it “pointless,” as reported by Reuters. In other words, he expects the weaker names to fade on their own rather than be rescued.

The bigger players, meanwhile, still have room to borrow. Microsoft CFO Amy Hood said the company is fortunate to have access to debt markets and has plenty of options to tap financing when conditions suit it. Leasing is one of the tools it is using, and Hood still expects Microsoft to stay free cash flow positive in fiscal 2027.

Meta raises cash as Nvidia steps in

Meta picked a different route to fund its AI ambitions. It priced 40 million Class A shares at $625 each on October 26, raising $25 billion, up from the $22.5 billion it planned at launch. Orders came in at roughly five times the shares on offer, according to Reuters.

The spending behind the raise explains the hurry. Meta’s capital expenditures hit roughly $35 billion last quarter, outpacing its approximately $33 billion in operating cash flow and pushing free cash flow to negative $2.1 billion for the first time since 2012.

Nvidia is investing $3 billion in Meta’s offering, and the two are expanding their partnership. Meta plans to use more Nvidia Vera Rubin systems, Vera CPUs and Spectrum-X networking for its next wave of AI agents, and the companies will work to cut the cost of training and running Meta’s Muse models, as reported by TheStreet. The chipmaker is starting to look as much like a backer of its customers as a supplier.

Jensen Huang also had tougher questions to answer. On October 29, he described Nvidia’s business with Singapore-based Megaspeed International as normal after U.S. authorities reportedly began investigating a former Megaspeed executive. 

He said Nvidia had checked that its chips were not illegally sent to China and that his talks with the former executive were typical of those with Chinese customers, as reported by Bloomberg.

Alphabet’s quarter showed both sides of the AI trade.Bloomberg / Getty Images

Alphabet and Microsoft show the cost of growth

Alphabet’s quarter showed both sides of the AI trade. Google Cloud revenue more than doubled from a year earlier to about $30.7 billion, yet free cash flow was negative $9.1 billion as capital spending outpaced operating cash flow. Earnings per share also missed estimates by a wide margin.

Capital spending is the reason for the pressure. Alphabet spent about $51.4 billion in the quarter and guided full-year spending to $195 billion to $205 billion.

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Microsoft had a smoother week than most. Revenue rose 19% to $92.3 billion and Azure grew 48%, beating forecasts, while capital spending reached $39.4 billion. Satya Nadella described enterprise AI adoption as a long-term opportunity rather than a quick quarterly boost, according to Microsoft.

Amazon bets demand will keep up

Andy Jassy sounded the most confident of the whole group. AWS grew 39.3% in the third quarter, its fastest pace in nearly five years, and its backlog hit $578 billion. Amazon is now installing an AI accelerator about every 14 seconds, and customers are taking new capacity nearly as fast as it comes online, Amazon reported.

That confidence carries a big price tag. Amazon raised its full-year 2026 capital spending forecast to about $220 billion and Jassy said spending will rise meaningfully in 2027, as reported by TheStreet. Jassy also said the AWS investment should yield a far larger revenue and free cash flow business than the company expected just a couple of years ago.

Put together, the week drew a clear line. The giants can still raise money and keep growing, while smaller players without other revenue may struggle to keep up, a split Musk spelled out when he said debt markets have largely closed to them. For now, Wall Street seems willing to reward growth only when the cash story holds up.

Related: Kevin Warsh sends a strong warning sign on rates to Wall Street

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Why we love this deal

Who doesn’t love a comfortable outfit? Whether it’s spring, summer, fall, or winter, feeling good in an outfit is a top priority. But during the colder months, an outfit that keeps you warm in style is one of the best you can find, and if it’s budget friendly, it only makes it that much better. Lounge sets are the perfect way to achieve comfort and style in just one purchase. Walmart has plenty to choose from, and our latest discovery is on sale for under $30.

The Weekease 3-Piece Lounge Set is on sale for just $25. The Walmart bestseller was originally $41, but with a limited-time sale, you can get it for nearly 40% off. Unlike other lounge sets that come with two pieces, this set comes with three, so you’re getting the biggest bang for your buck without having to spend a ton of money.

Weekease 3-Piece Lounge Set, $25 (was $41) at Walmart

Courtesy of Walmart

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Why do shoppers love it?

Trying to put together a go-to outfit can take a lot of time, money, and effort. You have to individually source the pieces, trying them on and making sure they go well together. And if you happen to find a lounge set at a store or online, the pieces may match, but most of the time you have to buy everything separately. Luckily, this lounge set from Walmart can give you a put-together look in no time.

Many lounge sets come with a top and a bottom, but this set comes with a little more. In addition to a top and a pair of pants, you also get a long cardigan to complete the look. The top is a crewneck tank top that you can wear year-round, adding more layers the colder it gets. The pants have a jogger-style silhouette with tapered legs, offering comfort and a more refined look compared to loose and baggy options. The cardigan is on the longer side, almost looking like a thin, elevated robe that hits around the middle of the calf, depending on your height.

Related: Walmart is selling a 4-piece accessory set with a tote bag, crossbody bag, wristlet, and wallet for $32

Details to know

Sizes: From women’s small to 2XL.

Colors: Black, Army Green, Dark Gray, and Khaki.

Includes: Long cardigan, crewneck tank top, and pants.

According to Walmart shoppers, this lounge set is “very comfortable,” and they love its “comfy and casual” look. One shopper said it’s a “nice outfit for fall,” with smooth fabric. Another customer highlighted the material as well, saying it has a “very soft, buttery feeling.”

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Lounge sets are an effortless way to look good and feel good. They’re designed for comfort, whether you’re at home or out and about. The Weekease 3-Piece Lounge Set is a cozy option on sale for $25, and it’s a deal you don’t want to miss.

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.

Why we love this deal

It seems like there is never enough storage in the kitchen or bathroom. Instead of shoving your pantry staples into overflowing cupboards or playing Tetris to fit toiletries on the cramped countertops, consider adding a storage cabinet to your setup. Storage cabinets are a practical way to maximize space in smaller areas. This is especially true if you go for one with a tall and narrow design, so it fits even into tight corners that are otherwise unused.

One that fits the bill is the Weefon 6-Shelf Farmhouse Storage Cabinet, and it’s on sale for just $95 at Amazon. We love this selection because it has a classic look with recessed panels on the doors and ample room with six rows of shelving and a handy pull-out door. In the past, you’d have to pay $120 to add this storage furniture to your home, but it’s more affordable to invest while it’s discounted to under $100. There is also a sleek, solid black version and a brown option that looks like rustic wood.

Weefon 6-Shelf Farmhouse Storage Cabinet, $95 at Amazon

Courtesy of Amazon

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Why do shoppers love it?

When you’re short on space, you don’t have extra room for bulky furniture, which is why this storage furniture is so great. It measures 67 inches tall, 11.8 inches deep, and 15.8 inches wide, giving it a compact footprint. Thanks to the narrow design, you can tuck it away in awkward, unused spaces, like behind the bathroom door or in a tight spot near the fridge. Despite the compact size, it’s still quite roomy since it stands over 5 feet tall, so you can fill it up with snacks, kitchen linens, bathroom cleaner, or your skincare arsenal. 

“I’m actually using it in my kitchen, and it works perfectly for extra storage,” one shopper wrote. They also raved that “the shelves and drawers provide plenty of space to organize pantry items, and it helps keep everything neat and accessible without taking up too much room.”

Related: Walmart’s 5-tier storage cabinet that’s ‘perfect for small spaces’ is only $40

The recessed doors along the top and bottom of this storage cabinet provide an elegant look that will blend with a variety of decor, whether your home leans cottagecore or coastal cabin. Between the doors, there’s a convenient pull-out drawer, which is great for organizing your smaller items, like kitchen utensils or travel-size cosmetics. Each door hides three rows of shelving, and two of the shelves are adjustable, so you can accommodate even taller items, like bottles of olive oil or mouthwash. 

Pros and cons of the $95 farmhouse storage cabinet

Pros

It’s a budget-friendly storage piece. At under $100, it’s not impossible to find a storage cabinet, but this selection has a larger size and a more attractive design than many comparable options. 

It has a compact footprint. If you’re in a tiny apartment or small house, this option is a smart choice for its narrow design.

It has a timeless appearance. Farmhouse-inspired designs, like this one, are classic. This means in a few years, it won’t start to look dated.

Cons

Assembly is required. The majority of furniture you buy online needs to be assembled, so this isn’t unusual, but it can still be a time-consuming process. 

It’s not solid wood. Except for the handles, the storage cabinet is constructed with engineered wood, which doesn’t have the same durability and lifespan as real wood. 

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Streamline your space for less while the Weefon 6-Shelf Farmhouse Storage Cabinet is on sale for just $95 at Amazon. This limited-time deal won’t last long, so snag it for yourself before time runs out.