Big Tech FCF fell from $60.7B to $7.4B as capex doubled; self-cannibalization is rational
JFPuget · x · 2026-10-30
Microsoft, Alphabet and Meta saw quarterly free cash flow drop from $60.7B a year ago to $7.4B this summer — revenue still grew 19-26%, but capex hit $125.6B in three months, double year-ago levels. Meta spends 54 cents per revenue dollar; Alphabet logged a second straight negative quarter and fell 12%. JF Puget argues the cannibalization fear is misplaced: Google should cannibalize its search business faster than competitors can.
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