Alphabet reports first cash flow decline
The increasing expenditure on artificial intelligence at Alphabet resulted in the company's first negative cash flow of $5.9 billion during the second quarter of 2026, despite Google's Cloud division achieving a record growth of 82%. The company anticipates capital spending to rise by approximately $15 billion in 2026, amid ongoing pressure on cash flows— as the tech sector increasingly relies on debt and stock sales to fund AI investments. Nonetheless, forecasts suggest that these investments will boost market shares and enhance competition, with expectations that cash flows for companies like Meta and Amazon will decline, while Microsoft is projected to generate less than half the cash flow it did last year.
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