July 9, 2026, 1:47 PM EDT. Apollo Global Management chief economist Torsten Sløk says markets could face real risks if the wave of free cash flow from Amazon, Meta, Google, and Microsoft-hyperscalers making giant AI bets-doesn't hit by 2028. Instead of generating cash, these tech giants have flipped to heavy spending mode, sinking more than $700 billion into AI in 2026 alone. Sløk points to possible margin hits, weak earnings, and a broad sell-off that could hit the Magnificent Seven stocks as well as the S&P 500. Bank of America is also flagging the shift: the big techs now look more like capital-intensive businesses, so if free cash flow slips as spending and leverage climb, the pain could spread fast.
