🇺🇸 Google Records Its First-Ever Quarter of Negative Free Cash Flow

⭕ Google’s parent company, Alphabet, spent more cash than it generated during the quarter.

⭕ Free cash flow = cash generated from operations - major capital spending.

⭕ Alphabet generated
~$39 billion in operating cash. spent ~ $45 billion on capital expenditure, mainly AI servers, data centres and networking infrastructure.

⭕ This resulted in -$5.9 billion in free cash flow, its first negative quarter since going public in 2004.

⭕ This does not mean Google made a $5.9 billion accounting loss or is in financial trouble.

⭕ Google is making a very large and expensive bet on AI. The question is whether these investments will eventually generate enough additional revenue and profit.

#Tech #AI