Breakfast News: Week in Review

Alphabet's cloud strength failed to protect the stock: GOOGL fell 10% even after Google Cloud beat revenue expectations, as investors focused on negative free cash flow and rising debt. The weekly roundup splits the AI spenders by cash generation.

Cash flow is the dividing line. MSFT kept positive cash flow despite heavy AI spending, while Alphabet's negative free cash flow drew the punishment. That contrast suggests the market is pricing funding capacity, not just revenue beats (interpretation).

Meta's capital raise. META is raising $60B through stock sales to fund AI infrastructure, with chip suppliers investing back into the company. Equity issuance at that scale means dilution risk for holders, and the supplier funding loop ties NVDA, AMD, and AVGO sentiment to META's spending plans (interpretation).

Deals and misses.

• ▸DASH agreed to acquire CART for $17B, valued at 23x free cash flow.
• ▸FTNT dropped 25% after subscription growth slowed to 13%.
• ▸MA keeps outperforming on strong service revenue growth.
• ▸TDG faces valuation compression despite sales growth, showing that a sales beat alone did not hold the multiple.

The week's pattern: growth that decelerates (FTNT) or cash burn that rises (GOOGL) gets sold hard, while self-funded growth (MSFT, MA) holds up.