Alphabet Misses on Search as Cloud Strength Falls Short
Alphabet's overall revenue missed Wall Street expectations despite soaring cloud-computing sales. Google Services revenue came in at $96.3 billion versus estimates of $98.4 billion, with ad revenue growing at its slowest pace in five quarters. Analysts said weaker-than-expected search sales raised questions about whether the company can monetize its AI-powered search engine. Heavy cash burn tied to AI infrastructure spending deepened the selloff, wiping nearly $400 billion off Alphabet's market value and dragging other AI-linked stocks lower.
Record Samsung Profit Fails to Satisfy Restless Investors
Microsoft Diverges Higher as Amazon and Intel Loom Next
Microsoft offered a counterpoint, rising about 3% after reporting stronger-than-expected cash flow and highlighting investor focus on how Big Tech funds ambitious data-center build-outs. With Wall Street having ended slightly higher overnight, attention now turns to upcoming results from Amazon and Intel for further signals on the AI investment outlook. Strategists say expectations are so elevated that merely meeting them is no longer enough, leaving technology shares exposed to further disappointment if revenue growth cannot keep pace with capital spending.
