Summary
Axios’s analysis of recent results found that Alphabet and Amazon’s return on invested capital has risen, Microsoft’s has been broadly steady and Meta’s has declined. The analysis also notes that off-balance-sheet obligations may make the picture less favourable than reported figures suggest.
Why it matters
The result weakens simple claims that AI investment is already destroying the economics of hyperscalers, but it does not establish that the spending will earn adequate long-term returns. Capital intensity and hidden financing commitments remain central risks for the AI market.
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