Free cash flow
The cash a company has left after paying its bills and investing in the business. Investors watch it to see how healthy a company is.
In the news
How “free cash flow” came up in recent issues.
- Oct 23Tech stocks slid on AI spending worries, and phones cost more
“Reuters reported that Meta's stock fell about 7% after its report showed its spending on artificial intelligence (AI) pushed its free cash flow negative.”
Related words
- Cost per month
- The price of something divided by the number of months you use it. It shows the real cost of a big purchase.
- Demand
- How much of something people want to buy at each price. When the price goes up, people usually buy less.
- Dow Jones Industrial Average
- A stock market index that tracks 30 large U.S. companies.
- Earnings per share
- A company's profit divided by its number of shares. Wall Street compares it with what analysts expected.
- Guidance
- A company's forecast of its future sales or profits. Stocks often move more on guidance than on past results.
- Memory chip
- A computer part that stores data, found in phones, laptops and game consoles.
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