Bill Ackman, through Pershing Square, argues that Big Tech's capital spending on AI data centers, which rose from $140 billion in 2023 to $740 billion in 2026, is a strong growth investment despite pressuring free cash flow. The spending surge is mainly by Microsoft, Meta, Amazon, and Alphabet, with expectations to reach $1.5 trillion including other AI players by 2027. Ackman believes the returns on this investment will be attractive, but risks include lower utilization and faster chip depreciation. Microsoft remains the strongest performer with positive free cash flow, while Meta faces challenges funding its expansion. Pershing Square increased holdings in Microsoft and Meta but reduced Amazon and exited Alphabet.
As of Nov 03, 2026 21:02 WIB, Microsoft shares on Pluang trade at USD 506.72 with a slight 1-day decline of 0.08%, reflecting cautious investor sentiment despite its strong market cap of $3.77 trillion. Meta Platforms shows a modest 0.41% gain at USD 609.20, while Amazon rises 1.12% to USD 248.38, indicating varied investor responses to Big Tech's AI spending surge. Notably, Microsoft holds the largest market cap among them at $3.77 trillion on Pluang.
Microsoft’s cautious approach to AI spending, funding growth with its own cash flow, has earned investor favor compared to peers like Alphabet and Oracle who borrow or issue stock to finance AI expansion. Microsoft’s capital expenditure cut was sligh...
In the third quarter of 2026, Class A shares of the Alger Growth & Income Fund underperformed the S&P 500 Index. Key contributors to the fund's performance included Microsoft, Apple, and Meta Platforms, while KLA Corporation, Corning, and Broadcom we...
Microsoft reported better-than-expected earnings with revenue of $92.28 billion and strong Azure growth of 48%, yet its stock price at $523.71 is still 2.59% lower than a year ago. Despite this, analysts remain optimistic, with a 24/7 Wall St. price ...
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 inv...
Apple and Microsoft both beat earnings estimates, but Apple is growing profits faster by expanding margins, driven by strong iPhone 17 sales and controlled infrastructure spending. Microsoft grew revenue faster, especially in Azure cloud services, bu...
