Alphabet Shares Decline Amid Cloud Growth Concerns and Increased AI Spending

Reported 2 days ago

Alphabet's shares dropped 8% due to concerns over slowing cloud growth and a planned $75 billion capital expenditure, reflecting investor anxiety over rising AI costs in Big Tech. The company reported a 30% increase in cloud revenue for the quarter, below previous growth and market expectations, prompting fears of a significant shift towards a capital-intensive AI business model. This news negatively impacted Alphabet's market value, which could reach a loss of $180 billion if the trend continues.

Source: YAHOO

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