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Free cash flow is the key metric to watch before investing in AI stocks amid heavy infrastructure spending.

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02 Nov 2026, 17:59 WIB
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Free cash flow is the key metric to watch before investing in AI stocks amid heavy infrastructure spending.

AI companies like Alphabet, Amazon, Microsoft, and Meta are seeing strong revenue growth but are also spending heavily on AI infrastructure, often burning through cash. Free cash flow, which measures cash left after operating expenses and capital investments, reveals which companies can finance their growth internally versus those relying on outside funding. Microsoft stands out with positive free cash flow, while others like Amazon and Alphabet show negative free cash flow, indicating heavy investment needs. Investors should focus on free cash flow trends and financial flexibility before buying AI stocks, as strong revenue alone doesn't guarantee sustainable profits.

Microsoft leads with a market cap of $3.88 trillion and a dividend yield of 0.75%, highlighting its strong financial position among AI giants as of Nov 02, 2026 23:12 WIB. Alphabet follows with a $3.43 trillion market cap and a 0.31% dividend yield, while Amazon, despite its $2.60 trillion market cap, shows no dividend yield, reflecting its heavy investment phase. On Pluang, Microsoft’s stock price is $523.50, up 0.30% for the day, contrasting with Amazon’s 5.49% gain and Meta’s slight 0.42% decline, illustrating varied investor responses to their cash flow strategies.

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