Alphabet shares fall as cloud growth concerns and AI spending rattle investors
Alphabet shares fell 8% on Wednesday as investors balked at the Google parent's slowing cloud growth and planned $75 billion capital spending for the year, underscoring growing fears over Big Tech's escalating artificial intelligence costs.
Alphabet Falls on Cloud Growth Fears
Alphabet reported mixed results in its fourth-quarter financial report, with solid earnings growth that exceeded expectations but sales that fell short. Slower gains for the key Google Cloud segment suggested that Alphabet's attempts to keep up with competitors might not be going as well as hoped.
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The company’s cloud computing business showed strong growth, while a forecast for the current quarter disappointed investors.
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