$GOOGL Alphabet, Google's parent company, released its third-quarter results, which fell short of market expectations.
Its shares plunged 12% right after the results were announced. Although total revenue and AI-related business were both growing, advertising growth slowed. On top of that, the company has been pouring money into AI infrastructure, raising concerns that its cash flow can't keep up. Investors are feeling pessimistic.
Total third-quarter revenue was $127.6 billion, up 25% year over year, but slightly below the expected $128.2 billion. With massive spending on AI and an EU fine, free cash flow plunged to negative $9.1 billion. Cash flow has now been negative for two consecutive quarters.
Net income fell 24% year over year to $26.47 billion, mainly because some of its investments, including SpaceX and Anthropic, went from making money to losing money, weighing on profits. Capital expenditures for the quarter reached $51.4 billion, more than double the year-earlier figure. Most of the money is going toward building AI data centers and buying servers. The company says it will continue to spend heavily this year, with full-year spending projected at $195–205 billion, and expects to spend even more next year.
#FOMC会议
Its shares plunged 12% right after the results were announced. Although total revenue and AI-related business were both growing, advertising growth slowed. On top of that, the company has been pouring money into AI infrastructure, raising concerns that its cash flow can't keep up. Investors are feeling pessimistic.
Total third-quarter revenue was $127.6 billion, up 25% year over year, but slightly below the expected $128.2 billion. With massive spending on AI and an EU fine, free cash flow plunged to negative $9.1 billion. Cash flow has now been negative for two consecutive quarters.
Net income fell 24% year over year to $26.47 billion, mainly because some of its investments, including SpaceX and Anthropic, went from making money to losing money, weighing on profits. Capital expenditures for the quarter reached $51.4 billion, more than double the year-earlier figure. Most of the money is going toward building AI data centers and buying servers. The company says it will continue to spend heavily this year, with full-year spending projected at $195–205 billion, and expects to spend even more next year.
#FOMC会议
