The figure that explains what is so alarming to Wall Street

The five tech giants have invested $556.9 billion since the start of the year, more than the cash they generated from their operations, for the first time since 2011. S&P changed Meta's rating outlook to negative, and Microsoft raised $25 billion in oversubscribed debt. Share buybacks plummeted by 83%.

The five tech giants — Microsoft, Alphabet, Amazon, Meta, and Oracle — invested a total of $556.9 billion in the first nine months of 2026, exceeding the cash they generated from operations ($542.9 billion). This is the first time since 2011 that capital expenditures have surpassed operating cash flow. The result: a shift from a free cash flow surplus of $143.5 billion last year to a combined deficit of $14 billion. On Friday, S&P changed Meta's credit outlook to negative, forecasting a cash flow deficit of $71 billion in 2027. Meanwhile, Microsoft raised $25 billion in a bond offering with oversubscription of about $115 billion. At Amazon, AWS revenue grew 39% but free cash flow was negative at $42.4 billion. Share buybacks fell 83%, and dividends increased but did not compensate. The headline creates a curiosity gap about the alarming figure, but the body provides a detailed economic analysis.

The figure that explains what is so alarming to Wall Street