Prof G Markets · Wednesday, July 29, 2026
Recent financial actions by tech giants, including Amazon issuing debt with wider rates and Google reporting negative free cash flow for the first time, are prompting market scrutiny. These events fuel discussions about the sustainability of AI investments and the timing of their expected returns.
“First was Amazon issuing debt, and that resulted in some concessions and some changes in the debt that was issued, and the rates have been trading wider, meaning the market saying that spreads on this particular credit should be a bit wider.”
“We have also seen last week, and you talked about this last week of course, Google going for the first time in history to now having negative free cash flow.”
“Which is also a development where people are beginning to ask, is that too much investment? Is it too little investment? If there's negative free cash flow, what does that mean? How long time will that take? How many years will it take before we see the payoff on those investments?”