1、M UpdateInternet|North AmericaHow Large Could OBBBA Be for AMZN,META,and GOOGL?Morgan Stanley&Co.LLCBrian Nowak,CFAEquity Analyst Brian.N +1 212 761-3365 Matt BombasseiResearch Associate Matt.B Julian HerreraResearch Associate Julian.H +1 212 761-1784 Nishant R Chintala,CFAResearch Associate Nishant

2、.C +1 212 761-0800 Todd Castagno,CFA,CPAGVAT Strategist Todd.C +1 212 761-6893 Kate Konetzke,CFA,CPAGVAT Strategist Kate.K +1 212 761-3457 InternetNorth AmericaIndustry ViewAttractiveWe size the impact of the One Big Beautiful Bill Act on Free Cash Flow across the major tech players,where we could s

3、ee a 30%/22%/5%uplift to 26 FCF for AMZN,META and GOOGL,which we expect will be used to deepen their competitive advantage in GenAI and deliver more near term FCF to investors.Accompanying our broader cross team note(see The Big Beautiful Tech Tax Bill),we outline the benefits for AMZN,META and GOOG

4、L.Here,we see 30%/22%/5%upside to 26 FCF for AMZN,META and GOOGL which we think will give the companies more flexibility to continue to deepen their competitive advantage in Generative AI and deliver more near-term FCF to investors.For a broader discussion of the accounting changes,assumptions and a

5、reas where we could be wrong,please refer to the larger cross team note.Amazon:Largest Beneficiary with a 30%($15bn)Lift to 26 FCF:AMZN is the largest FCF beneficiary of this bill over a multi year period due to 1)AMZNs persistently higher capex levels supporting both its data center buildout and al

6、so the equipment in its fulfillment and logistics operations and 2)Higher levels of eligible R&D than peers,supporting its leading cloud business and internal initiatives.Note too that because these tax benefits are largely driven by AMZNs persistently higher levels of spend and AMZN does not have e