Alphabet stock plummets as AI spending turns cash flow negative
Google's parent company, Alphabet, saw its shares fall as much as 13% in early trading Thursday after it missed profit expectations and reported negative free cash flow as artificial intelligence spending surged. Revenue grew 25%.
Alphabet’s stock experienced a significant decline in early trading on Thursday after the company failed to meet profit expectations. This downturn was attributed to a surge in artificial intelligence spending, which resulted in negative free cash flow. Despite these challenges, Alphabet reported a substantial 25% growth in revenue.
- Alphabet’s shares fell up to 13% in early trading.
- The company missed profit expectations.
- Free cash flow became negative due to increased AI spending.
- Revenue saw a 25% increase.
Write a comment