Alphabet's AI Spending Spree Weighs on Free Cash Flow, Stock
Dow Jones
Jul 23
1127 ET - Alphabet reported its first-ever negative free cash flow number in company history, Davidson analysts say in a research note, as artificial-intelligence investments continue to climb. The Google parent raised its capital expenditure outlook for the year by $15 billion, to between $195 billion and $205 billion, aiming to accelerate its pace of capacity delivery to meet growing demand. "The updated guide implies a material ramp in capex through year-end with nearly $60B in quarterly capex in 3Q and 4Q," the analysts write. Plus, management reiterated that capex will increase "significantly" next year, fretting markets and sending shares 7.5% lower. (connor.hart@wsj.com)
(END) Dow Jones Newswires
July 23, 2026 11:27 ET (15:27 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.