By Daragh Thomas
Publication Date: 2026-10-29 15:30:00
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Microsoft Corp. (NASDAQ:MSFT) generated nearly $28 billion more free cash flow than Alphabet Inc. (NASDAQ:GOOGL) last quarter, an advantage D.A. Davidson analyst Gil Luria says matters in the AI race.
“Microsoft’s going to be fine. They don’t need capital,” Luria told the Prof G Markets podcast Thursday.
Yet Microsoft is seeking $25 billion or more in a bond sale, as its finance chief says borrowing is a choice, not a necessity.
Why Microsoft Has the Advantage
Luria said Microsoft has spent three years renting additional computing capacity from neocloud providers, allowing it to meet surging demand without building every data center itself.
Google is now adopting a similar approach, but Luria warned that outsourcing capacity could squeeze margins as its own infrastructure spending accelerates.
“Microsoft…
