Buyside capex expectations for Alphabet run to $375 billion, far above the $250 billion Wall Street consensus, UBS and JPMorgan find
NEW YORK, July 22. Buyside investors expect Alphabet to spend between $325 billion and $375 billion on capital expenditures, significantly above the $250 billion Wall Street consensus, UBS reported. JPMorgan (JPM) found a similar picture following an equity raise by the company: investor expectations ran from $325 billion to $350 billion, the bank noted, also well above the Street's estimate of approximately $250 billion.
Key takeaways
- Buyside investors expect Alphabet to spend roughly $325 billion to $375 billion on capital expenditures, well above the roughly $250 billion Wall Street consensus, according to UBS.
- JPMorgan found buyside capex expectations of $325 billion to $350 billion, similarly above the Street's approximately $250 billion estimate.
- Both UBS and JPMorgan put the floor of buyside capex expectations at $325 billion.
- The gap over consensus ranges from $75 billion at the low end to $125 billion at the high end of UBS's range.
- JPMorgan tied the shift in investor positioning to a recent equity raise by Alphabet.
NEW YORK, July 22. Buyside investors expect Alphabet to spend between $325 billion and $375 billion on capital expenditures, significantly above the $250 billion Wall Street consensus, UBS reported. JPMorgan (JPM) found a similar picture following an equity raise by the company: investor expectations ran from $325 billion to $350 billion, the bank noted, also well above the Street's estimate of approximately $250 billion.
A $75 billion to $125 billion gap over consensus
At the low end of both firms' buyside ranges, investors are pricing in $75 billion more than the Street consensus. At the high end of the UBS range, the spread reaches $125 billion.
UBS described buyside expectations as significantly elevated relative to that $250 billion consensus. JPMorgan's note connects the shift in investor positioning to a recent equity raise by Alphabet (GOOGL). Both banks put the floor of buyside capex expectations at $325 billion.
JPMorgan's read after the equity raise
JPMorgan's finding came after the equity raise changed investor positioning, the bank noted. The resulting range, $325 billion to $350 billion, is tighter than UBS's $325 billion to $375 billion spread but sits in the same elevated territory.
The Street's anchor of approximately $250 billion, as JPMorgan described it, has not moved to match investor assumptions. The gap remains: $75 billion to $100 billion above consensus by JPMorgan's range, $75 billion to $125 billion by UBS's.