Alphabet Reported Negative Free Cash Flow for the First Time Ever. Here's Why That Milestone Matters for Shareholders.
Investors should get comfortable owning what has become a capital-intensive business.
Overview
Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG), like its hyperscaler peers, is in the middle of a massive data center build-out. The technology powerhouse, which owns a laundry list of globally popular internet platforms, has historically been a wonderful portfolio contributor.
But now investors must accept that this business is evolving. Alphabet's financials are taking a hit, a development that might come as a surprise.
Details
This top artificial intelligence (AI) stock reported negative free cash flow (FCF) in the second quarter (ended June 30), marking the first time this has happened. This matters for the company's shareholders.
Source
Originally published at www.fool.com.
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