Alphabet (NASDAQ:GOOGL) announced a record $75 billion AI investment for 2025—29% higher than Wall Street's forecast—but investors weren’t impressed. Shares fell 9% in extended trading, as the company missed cloud revenue expectations and concerns over profitability grew.
\u2714 Massive AI Spending – Alphabet’s $75B AI buildout surpasses 2024's $52.5B capex and Wall Street's $58B estimate.
\u2714 Cloud Growth Slows – Despite AI hype, Google Cloud’s revenue growth decelerated, raising concerns.
\u2714 Competitive Pressures – China's DeepSeek AI offers cut-rate alternatives, fueling questions about Google’s cost efficiency.
\u2714 Stock Market Reaction – Alphabet stock plunged 9% after hours, despite a 9% YTD gain.
\ud83d\udd39 Sundar Pichai’s AI Vision – Google’s Gemini models aim for efficiency, competing with Microsoft & OpenAI.
\ud83d\udd39 Infrastructure Investments – Majority of capex will go into servers & data centers to support AI and cloud growth.
\ud83d\udd39 Cloud Constraints – Capacity issues in Q4 impacted Google Cloud AI adoption, CFO Anat Ashkenazi noted.
\ud83d\udcca Will AI spending translate into long-term profitability?
\ud83d\udcc9 How much will investors tolerate before demanding results?
\ud83d\udd0d Track Financial Trends:
\u2705 Balance Sheet API – Get insights into Alphabet’s AI capex impact.
\u2705 Revenue Product Segmentation API – See how AI investments are shaping Google Cloud & Search.
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