The DeepStack Call · Part 14 · Markets
The Cash Arrives Unevenly
SplitOnly Microsoft pays with room to spare
Microsoft pays for its build from its own cash. Alphabet and Meta spend most of theirs; Amazon spends more than its operations bring in.
ConvictionModerate
What to do with this
- Divide capital spending by operating cash, company by company: in the first half of 2026 Microsoft spent 65.3%, Amazon 137.8%.
- Hold free cash flow to one ruler: Meta's own measure gave $784 million for the June quarter of 2026; cash less purchases, $1.7 billion.
- Read the financing section beside the spending line: Alphabet sold $49.6 billion of stock in June 2026, and Meta borrowed $24.9 billion.
Next test · Oct 28, 2026Alphabet's September quarter: whether capital spending takes 80 cents or more of each dollar of operating cash, after 49.5 cents a year earlier and 95.0 cents in the first half of 2026.