NEW YORK, July 24, 2026, 15:10 EDT
- Apple rose 3.5% to $332.87 in the latest available afternoon trade. The regular U.S. session remained open.
- Operating cash flow less property purchases was $78.28 billion for Apple. Alphabet NASDAQ:GOOGL had $4.26 billion.
- Apple traded above Baird’s new $330 target before its July 30 results.
Apple shares rose 3.5% Friday afternoon as AI spending fears gripped markets. Its latest filing shows why investors see it as a capital-spending shelter.
Apple and Alphabet generated almost identical six-month operating cash flow. After property and equipment purchases, Apple had $78.28 billion left. Alphabet had only $4.26 billion on the same calculation.
The 18-fold difference supports Apple’s current market premium. It also raises the hurdle before next week’s earnings report.
| Company | Six-month operating cash flow | PP&E purchases | Cash after PP&E | PP&E / sales | Trailing P/E |
|---|---|---|---|---|---|
| Apple Inc. NASDAQ:AAPL | $82.63 billion | $4.34 billion | $78.28 billion | 1.7% | 40.3x |
| Alphabet Inc. NASDAQ:GOOGL | $84.86 billion | $80.60 billion | $4.26 billion | 35.1% | 16.0x |
Operating cash flow minus property, plant and equipment purchases. This is a reporter calculation, not a GAAP measure. Apple’s period ended March 28; Alphabet’s ended June 30. Multiples reflect the latest available trades around 14:55 EDT.
Apple’s after-PP&E figure equaled 94.7% of operating cash flow. Alphabet’s comparable figure equaled just 5.0%.
Alphabet’s second-quarter free cash flow was negative $5.86 billion. That came despite 24% revenue growth and 82% cloud growth.
Apple is not avoiding large technology investments. Research and development rose 33% to $22.31 billion in the first half. The filing cited higher infrastructure and headcount-related costs.
Baird analyst William Power called Apple a “port in the storm” for software and megacap technology capex. He raised his target from $310 and kept an Outperform rating. The market price had already moved beyond his target. Investing.com
Power also called Apple’s valuation rich against its historical trading range. The shares traded at 40.3 times trailing earnings, versus Alphabet’s 16.0 times.
Apple reports fiscal third-quarter results on July 30. Its conference call begins at 5 p.m. EDT.
The March quarter created a demanding comparison base. Revenue rose 17%, while iPhone sales climbed 22% and services gained 16%.
Services gross margin reached 76.7%, against 38.7% for products. That spread is central to Apple’s cash-retention investment case.
The S&P 500 and Nasdaq remained headed for second straight weekly losses. AI investment costs and cash burn stayed central market concerns.
Risks: Memory costs remain a margin headwind, Baird said. Apple’s 40-times multiple leaves little room for a weak outlook. Slower iPhone or services growth could quickly unwind Friday’s gain.
Friday’s trade priced Apple as the market’s AI capex shelter. The cash-flow gap explains the label. The 40-times multiple shows its cost.
Related articles: NASDAQ:GOOGL
