Alphabet Shares Plummet 8% Amid Earnings Miss and Bold AI Spending Plans
Alphabet faced a significant drop in shares, reporting Q4 earnings and plans for increased AI spending that raised investor concerns.
The mixed results from major companies highlight the ongoing volatility in the markets, with some firms exceeding expectations while others stumble, raising concerns among investors.
Stocks making the biggest moves midday: Alphabet, Apple, Uber, Nvidia and more
CNBC·1M
·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.The significant drop in Alphabet's stock illustrates the mounting concerns among investors regarding the company's aggressive AI spending amidst slowing revenue growth.
Google slammed with $200B stock hit over AI spending fears, slowing revenue growth
New York Post·1M
·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.Leans RightThis outlet slightly leans right.Despite Alphabet's promise to increase AI spending, there are growing concerns regarding the company's ability to generate a return on such investments, especially in light of competitive advancements from rivals.
Stock market decline: Alphabet, AMD earnings spark Nasdaq, S&P 500 dip
USA TODAY·1M
·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.Google's slight revenue miss underscores a challenging year for the tech giant, whose competitive edge may be at risk as it faces increasing pressures from both domestic and international competitors.
Google parent Alphabet’s earnings disappoint Wall Street amid stiff AI competition
The Guardian·2M
·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.Leans LeftThis outlet slightly leans left.Despite Alphabet's substantial revenue figures, the disappointing earnings report highlights the challenges the tech giant faces in maintaining robust growth amidst rising capital expenditures and a decelerating cloud business.
Instant Reaction: Alphabet Slides After Earnings
Bloomberg·2M
·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.Despite a solid financial performance, Alphabet's outlook is clouded by investor skepticism regarding its AI investments and the looming regulatory challenges that could threaten its market position.
Google's ad sales rose at robust rate in holiday season, but AI-driven numbers let down investors
Associated Press·2M
·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.Alphabet's struggles in cloud revenue and the soaring capex forecast serve as a stark reminder of the increasing scrutiny facing Big Tech as investors seek tangible returns from hefty AI investments.
Alphabet is planning to spend big on AI again this year, sending shares down
Business Insider·2M
·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
Summary
Alphabet Inc. reported Q4 earnings of $96.47 billion, missing analyst expectations of $96.56 billion, leading to an 8% drop in shares that wiped out over $200 billion in market value. Despite beating EPS forecasts at $1.21 a share, concerns over weak growth in Google Cloud and a slowdown in its advertising business persisted. Alphabet announced plans to invest $75 billion in AI initiatives for 2025, a substantial increase from previous years and higher than Wall Street estimates. This has spurred skepticism about the viability and returns of such spending, especially amidst competitive pressures from startups like China's DeepSeek.
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History
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