About

Two lines for the hyperscaler basket (AMZN, GOOGL, META, MSFT, ORCL), both indexed to Q1 2020. Solid blue is capital spending (capex) divided by the consumer price index (CPI) and dashed green is nominal capex, with the axis starting in 2020. Compare all-sectors capex over CPI on FRED.

Instructions

Read the badge first. Treat Stretched as Capex / CPI high versus its own history. The latest quarter stays off the chart until at least 80 percent of trailing-four-quarter spend has filed.

Signals

• Tight - Latest complete Capex / CPI is low versus its own history.
• Typical - Latest complete Capex / CPI sits near its own average.
• Stretched - Latest complete Capex / CPI is high versus its own history.