Tech Company Capital Spending Spikes in First Quarter

During the quarter ending in March, the U.S. tech “superpowers”—Alphabet, Amazon, Microsoft and Facebook, spent $16 billion on capital projects, a figure 68 percent higher than their combined capital spending during the same quarter a year ago, a rate of growth that outpaces that of revenue. This according to a recent Bloomberg article. “In one sense,” the article says, “the booming spending on big-ticket projects defies economic logic. In principle, once companies achieve gigantic scale,… Read More