The New Rules For Big Tech's AI Spending

Impact · against what's priced in

The market is shifting from valuing AI growth in isolation to penalizing the capital intensity required to achieve it. Alphabet and Meta are facing negative pressure as funding gaps emerge, while Oracle's recovery is driven by the first concrete evidence that its infrastructure spending has a defined ceiling.

GOOGL−0.80

Challenges what's priced in

The price assumes

An overall FCF margin near 18.2%