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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InIn a move reflecting the massive costs of the AI leadership race, Alphabet reported negative free cash flow for the first time since 2004. This shift resulted from capital expenditures reaching a record $44.9 billion during the second quarter. According to reports, this aggressive spending is primarily directed toward building out the infrastructure required for generative AI technologies.
Financial data shows that management has raised its full-year capital expenditure guidance to a range of $195 billion to $205 billion, signaling sustained pressure on profit margins. Per market data for big-tech peers, Microsoft (MSFT) closed at $393.35 and Meta (META) at $593.41 on July 28, 2026, as investors evaluate how effectively these firms can convert AI investments into tangible cash returns.
Regarding market performance, GOOGL closed at $333.71 and GOOG at $332.6 as of July 28, 2026. With the CapEx-to-revenue ratio projected to reach approximately 41% by year-end, traders are watching for signs of a return to positive cash flow in upcoming quarters, especially following a session where GOOGL hit a daily low of $324.44.