Mag 7 Earnings Preview - All You Need To Know As 4 Megacaps Report

The biggest day of April, if not the entire first half of 2026, is almost here: tomorrow we have not only the Fed (preview here) but also earnings from 4 of the Mag 7 names - Amazon, Microsoft, Meta and Alphabet - which together account for 18% of S&P market cap. 

For those who missed it, we published a big picture take yesterday, where we quoted Goldman Delta One head Rich Privorotsky who said that it really all depends on Mag 7 capex: "equities are being driven by one thing…AI spend." He thinks that in a bizarre twist in what many claim is a resource-constrained industry, it is actually demand that is artificially inflated as a result of "Token Maxxxing" which has emerged as the framing, as engineering teams are effectively competing to consume as much compute as possible, with a real fear that under spending = career risk. To Privorotsky that creates a perverse incentive to spend aggressively, even inefficiently. Meanwhile supply constraints are also seemingly everywhere: power, CPUs, GPUs, copper, even engineers. Ignoring the bottlenecks, the market is extrapolating the upside indefinitely forward: more tokens, more intelligence, eventual AGI... or at least was until yesterday's WSJ report on OpenAI missing revenue and user bogeys and getting nervous about overspending, slammed the brakes on AI capex enthusiasm.