Google’s latest earnings report really spooked Wall Street!
After Alphabet released its latest earnings report, its stock plunged as much as 10% in premarket trading. If the decline holds, its market value could shrink by more than $400 billion.
Most astonishingly, Google Cloud’s quarterly revenue has already reached $30.7 billion, up more than 100% year over year.
With its cloud business growing so quickly, why is the market still selling off?
Because Google’s capital expenditures could reach $205 billion this year, while its cash burn has hit $9.07 billion.
More concerningly, revenue from Google’s search business grew by just 12%, below the market expectation of 14.7%.
AI is helping Google expand its cloud computing business, but it’s also starting to threaten its most profitable search business.
If more and more people get answers directly through AI in the future, the business model Google built on search advertising could genuinely come under threat.
$GOOGLB $AAPLB $AMZNB
After Alphabet released its latest earnings report, its stock plunged as much as 10% in premarket trading. If the decline holds, its market value could shrink by more than $400 billion.
Most astonishingly, Google Cloud’s quarterly revenue has already reached $30.7 billion, up more than 100% year over year.
With its cloud business growing so quickly, why is the market still selling off?
Because Google’s capital expenditures could reach $205 billion this year, while its cash burn has hit $9.07 billion.
More concerningly, revenue from Google’s search business grew by just 12%, below the market expectation of 14.7%.
AI is helping Google expand its cloud computing business, but it’s also starting to threaten its most profitable search business.
If more and more people get answers directly through AI in the future, the business model Google built on search advertising could genuinely come under threat.
$GOOGLB $AAPLB $AMZNB