Technology giant AI investment soared to one billion dollars, cash flow under pressure, rising financing needs impacting technology stocks.

A bank analyst from Paris, France, stated that the free cash flow of Oracle, Alphabet, Amazon, and Meta is beginning to "rapidly slide into the negative territory," with only Microsoft appearing to be more resilient, at least for the time being. Russ Mould, investment director at brokerage firm AJ Bell, said that the market is concerned that these internet groups are "shifting from light asset business models to capital-intensive models," which has recently weighed on the performance of tech stocks and made their cash flow "less clear and harder to predict than before." He pointed out, "Capital expenditures for AI-focused tech companies are growing far faster than sales growth. The initial signs are more use of debt financing and cuts to stock buyback programs. This reduction in 'generous shareholder returns' weakens short-term stock returns."