- Big Tech companies, including Alphabet, Amazon, Meta, and Oracle, face a potential decline in free cash flow due to escalating data-center expenditures, projected to reach nearly $1 trillion.
- As capital needs shift from asset-light to asset-heavy models, the bond market reflects increased skepticism, with widened credit spreads and more challenging conditions for debt issuance.
- Moody's emphasizes that this fundamental change in financing and infrastructure investment threatens credit quality, moving the perception of these companies closer to that of industrial utilities.