Do Amazon and Alphabet's Combined $420 Billion in Capital Expenditures Make Sense?
Amazon and Alphabet are seeing results of their spending paying off.
Overview
Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) are the two biggest spenders in the data center space. For 2026, Amazon projects spending about $220 billion. Alphabet is slightly behind that, giving investors a range of $195 billion to $205 billion, but it has also raised its guidance every quarter in 2026, so the actual figure may be much higher than the midpoint of $200 billion. In all reality, these two have nearly a blank check to get as much computing capacity online as possible, but that's a massive chunk of money that could have been used for other purposes.
In fact, if Amazon and Alphabet decided to pay investors a one-time dividend using that money, Amazon shareholders could have received $20.41 per share, and Alphabet investors would have received $16.40 per share. That's a huge percentage of their stock price, but would that have made sense? Let's take a look.
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Originally published at www.fool.com.