Leading AI-driven companies like Meta, Alphabet, and Oracle are experiencing significant revenue and earnings growth, but their free cash flow has sharply declined due to increased capital expenditures, litigation costs, and infrastructure investments. Meta's Q2 free cash flow dropped 91% year-over-year, with Alphabet and Oracle facing even larger negative cash flows. This surge in AI infrastructure spending has driven record debt issuance of $489 billion in 2026 so far, while stock buybacks and free cash flow have decreased across the sector. Investors remain hopeful about future returns from AI investments, but the growing gap between earnings and free cash flow raises concerns about a potential boom-bust cycle.
The August jobs report showed stronger-than-expected job growth with 162,000 jobs added and unemployment steady at 4.1%, easing concerns about labor market weakness. This shifts the Federal Open Market Committee's (FOMC) attention fully to inflation ...
Jim Cramer recently called the Magnificent Seven tech stocks—Amazon, Alphabet, Meta, Microsoft, Nvidia, and Tesla—a generational buying opportunity, arguing they are undervalued due to heavy AI infrastructure spending. He believes this capital invest...
Meta Platforms, Inc. has launched its Muse Spark 1.3 AI model, which significantly reduces the performance and token efficiency gap with leading AI models from Anthropic and OpenAI. This advancement strengthens Meta's AI strategy by improving token u...
The Schwab U.S. Large-Cap Growth ETF (SCHG) heavily concentrates its portfolio in just three tech giants—NVIDIA, Apple, and Microsoft—making up nearly a third of its holdings. Despite being marketed as a diversified large-cap growth fund, this concen...
Goldman Sachs highlights that the AI capital spending cycle is in its early stages, driven by a shift from consumer-led to corporate capex-led growth in the US economy. While stocks like NVIDIA led previous gains, the market is now rotating leadershi...
