While underwriting PLTR to try to understand why their valuation is so high, I was struck by how little they spend on cap ex--only $26 million for the trailing twelve months. As a percent of revenue, that was 0.61%.
For comparison, I looked at the Mag 7 along with MU, another high flying stock:
[Cap Ex/Revenue Analysis](https://docs.google.com/spreadsheets/d/1opghlb7zNhnUMlCI0mJXyXRw_BHLgoiOm2pq3N8c0Qs/edit?usp=sharing)
I would think a software company would have to invest something to continually improve their product. MSFT, as one comparison, invests 23.5% of their revenue in cap ex.