Market Update on Microsoft and Alphabet
As of recent reports, Microsoft (NASDAQ: MSFT) holds a market cap of approximately $3.6 trillion, while Alphabet (NASDAQ: GOOGL, GOOG) has surged to nearly $3.9 trillion. Both companies are asserting their dominance in the artificial intelligence (AI) sector, with Alphabet’s recent advancement in the Google Gemini project showcasing its relevance in the competitive landscape.
In the last 12 months, Microsoft generated nearly $78 billion in free cash flow, alongside $69 billion in capital expenditures. Conversely, Alphabet reported just under $74 billion in free cash flows while planning to invest between $91 billion and $93 billion in capex this year. Both firms remain industry leaders, but investors may find Alphabet more attractive due to its lower P/E ratio of 32 compared to Microsoft’s 34, as well as its strategic investments into AI-related technologies.
