Alphabet and Meta see cash flow hit from AI spending
Business
Big Tech is pouring huge amounts of money into artificial intelligence, but not everyone's impressed.
Alphabet just posted its first negative free cash flow since 2004, which sent its stock sliding.
Meta isn't faring much better: its free cash flow dropped a whopping 91%, and it also raised its AI spending plans.
Microsoft stock jumps 8% amid skepticism
Meanwhile, Microsoft actually saw its stock jump 8% after maintaining its own AI spending targets.
Investors want to see real results, not just big promises, and analyst Chris Wood warns that companies investing heavily in AI infrastructure might not be the ones who benefit most down the line.