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Among the major technology companies that investors routinely group together, Microsoft (MSFT) is currently the only one producing positive free cash flow.
What it leaves open is whether the gap reflects discipline at Microsoft, an unusually heavy investment cycle at its peers, or something in between.
What the free cash flow position means Free cash flow is the cash a business produces after covering capital expenditure and working capital needs. Positive free cash flow means inflows exceed those costs.
Microsoft's peers, as a group, are currently running the opposite: spending more than the operations return. That puts Microsoft in a structurally different financing position from every other name in the peer set.
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