JPMorgan lifts Google Cloud and AWS growth forecasts, cuts Meta earnings view

JPMorgan has raised its growth forecasts for Google Cloud and Amazon Web Services while lowering its earnings outlook for Meta, arguing that AI monetization is still early but already reshaping financial models across large tech platforms. In the bank’s latest report, Google Cloud’s 2027 revenue growth forecast was lifted to 107% from 70%, with the revision tied largely to a greater contribution from Tensor Processing Unit, or TPU, sales. The 2028 forecast was also increased, and near-term quarterly expectations for 2026 were moved higher as well. For AWS, JPMorgan now expects revenue growth to reach 40% in 2027 and said that estimate may still be conservative. The bank pointed to broader cooperation with OpenAI, an additional deployment of 2 million GPUs in 2027 and 2028, and stronger pricing power in AI compute. It noted that AWS raised reserved GPU capacity pricing by 15% starting Oct. 7, the fourth straight quarterly increase, while prices tied to H100/H200 and B200/B300 systems have climbed 40% to 75% since the start of the year. Meta moved in the opposite direction. JPMorgan added a $10 billion legal charge to its model for the third quarter of 2026 and linked it to a settlement with 52 state attorneys general. The bank also highlighted capital spending pressure, forecasting 2027 capex of about $242.7 billion and free cash flow of negative $72.8 billion. The report also turned more cautious on Fiverr, citing weaker traffic and a slower shift toward higher-value work.