Unchained · Friday, July 31, 2026
A notable shift has occurred in big tech, where companies like Meta and Google, previously known for immense profitability and low capex, are now increasingly leveraging the debt market for tens of billions of dollars. This trend is underscored by Oracle's recent downgrade to near junk status, highlighting a new focus on free cash flow.
“I mean, they were enormously profitable, had had very, very, very low capex and unlimited free cash flow. A big inversion now, because of how, I mean, the revenues are great, but the, I mean, like Google went to public markets for the first time in decades. I mean, these companies are raising tens of billions of dollars in the debt market.”
“I know Oracle was recently downgraded to like one, one ring above junk status. And yeah, I mean, free cash flow, it's all of a sudden, it's it's a big deal.”