Alphabet's cash flow wins investor favour

Alphabet's cash flow wins investor favour

Three of the biggest US technology companies flagged plans yesterday to accelerate capital spending over the next year, but investors were most accepting of Google-parent Alphabet's ability to fund its plans from its cash flow.

Tech leaders ramp up AI spending, but Alphabet's cash flow wins investor favour

Alphabet, Microsoft, and Meta plan to boost spending on chips and data centres, but investors favoured Alphabet due to its strong cash flow. Alphabet’s spending used 49% of cash from operations, versus 64.6% for Meta and 77.5% for Microsoft. Still, Big Tech is betting on AI, though returns remain uncertain.