This Key Metric for Amazon and Alphabet Will Take a Huge Hit in 2026 Thanks to Massive AI Spending. Here's What It Means for Investors.

Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) shocked investors when they announced their AI spending plans for 2026. Alphabet went first, telling investors it would spend between $175 billion and $185 billion this year on capital expenditures. Not to be outdone, Amazon said it would spend about $200 billion this year.Both companies are investing heavily to keep up with growing demand for compute power among artificial intelligence developers, including their own AI projects. Management teams at each company noted that their cloud computing operations remain supply constrained, further evidenced by their growing contracted backlogs.But the massive increases in cash spending for both companies will put pressure on a very important metric used to track their financial health. Here's what investors need to know.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool