Alphabet’s share of sink after cloud growth stalls and high spending

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Alphabet shares decreased sharply after slowing the growth in Google Parent clouds and plans to spend $ 75 billion this year on energy building for investor intelligence products.

Late on Tuesday, Alphabet reported a two -number two revenues and profits in the fourth quarter, driven by its basic advertising work. But investors are prevented in a quarter disappointing for the vast cloud unit, which runs Google Data Centers.

The cloud department recorded a 30 percent increase in revenue to approximately $ 12 billion, but this was slower than the growth rate of 35 percent in the previous three months, and less than 12.2 billion dollars than analysts. Anat Ashkenazi financial manager blamed “the request is more than we had a capacity available.”

However, the Google AI’s spending scale to meet this demand surprised the market. The fourth capital expenditures jumped to 14.3 billion dollars, up from $ 11 billion in the past year and exceeding expectations of $ 13.2 billion.

Google Sundar Pichai CEO said that spending on data and servers will accelerate to $ 75 billion this year, up from $ 53 billion in 2024 and the third more than Wall Street estimated.

“The cost of using (AI) will continue to go down, which will make extraordinary cases more clear,” said Bishi, noting that the company was spending respectfully. “This is the space of opportunities. It is as much as it is about, and for this reason you see us investing to meet that moment.”

Alphabet shares have decreased to 8 percent in trading after working hours, leaving the right track for the fifth trading day in the past decade and wiping about $ 200 billion in the market value. However, the stock has previously increased by 45 percent in the past 12 months, evaluating it at $ 2.5 trillion behind Apple, Microsoft, NVIDIA and Amazon.

Alphabet’s Dall from Microsoft echoed last week, which also lost $ 200 billion in market value after he was absent from cloud growth estimates, and said that the spending of artificial intelligence to spend “hundreds of billions” to stay at the forefront of artificial intelligence research.

The market reaction reflects broader concerns about spending in US groups that build and operate vast databases filled with advanced chips that they claim are necessary to train and operate large language models of artificial intelligence.

The sale of the alphabet also depends on the doubts cultivated by a new model of new models from the Chinese company Deepseek, which claimed to achieve similar performance Nafidia chips.

Pachay said that Dibsic had a “huge” team “show” you can lead a lot of efficiency to serve the AI ​​models well.

He also prepared analysts’ questions about whether Gemini and its competitors are preparing search work for basic search work, as users are increasingly used Chatbots to find online information and answers, which avoids the need to click on ads that support their free service.

There is a little evidence of challenging the dominant search engine so far. The revenue of the search -related ads increased by 13 percent to $ 54 billion per quarter, overcoming estimates, with the support of another quarter of ads growth in YouTube.

In general, the group’s revenues increased by 12 percent to 96.5 billion dollars in the fourth quarter compared to the same period of the three months in the previous year. With the exception of the costs of gaining traffic paid to advertising partners and device partners, this number was 81.6 billion dollars, and the losses of Wall Street of $ 82.8 billion in a Bloomberg poll. The net income rose 28 percent to 26.5 billion dollars.

Google is also at the intersection of organizers all over the world. The company faces the possibility of its dismantling after losing a historical issue filed by the US Department of Justice, which led to the ruling that the research work has participated in a monopolistic behavior.

This week, China may have revived the anti -monopoly investigations into the Google mobile operating system from Google, which led to its Bijin’s office raid in a move that was interpreted as a financial crane in customs tariff negotiations with US President Donald Trump.