📉 $GOOGL: Why are Alphabet shares plunging?
Alphabet shares ($GOOGL ) fell by approximately 11% after its quarterly report. The market expected more from its advertising business, while massive AI investments intensified concerns about future profitability.
🔹 Competition from AI. Search revenue growth slowed to approximately 12%, compared with 17% in the previous quarter. Investors are questioning whether Google can effectively monetize search in the age of AI.
🔹 Capital expenditures, according to the figures provided, reached $51.4 billion, and free cash flow turned negative, at minus $9.1 billion. The company warned that investments would increase significantly further in 2027.
🔹 Financial results were also affected by an unrealized loss on an investment in SpaceX.
🔹 There was some positive news, too. Google Cloud revenue more than doubled to $30.71 billion. However, this was not enough to offset weaker results from the advertising business and concerns about spending.
Do you think spending and competition will continue to put pressure on the company's valuation?
I also have $GOOGLB in my bStocks portfolio. I'm holding for now and want to see how the market reassesses the company's results.
#GOOGL #alphabet #AI #bStocks #Investing
Alphabet shares ($GOOGL ) fell by approximately 11% after its quarterly report. The market expected more from its advertising business, while massive AI investments intensified concerns about future profitability.
🔹 Competition from AI. Search revenue growth slowed to approximately 12%, compared with 17% in the previous quarter. Investors are questioning whether Google can effectively monetize search in the age of AI.
🔹 Capital expenditures, according to the figures provided, reached $51.4 billion, and free cash flow turned negative, at minus $9.1 billion. The company warned that investments would increase significantly further in 2027.
🔹 Financial results were also affected by an unrealized loss on an investment in SpaceX.
🔹 There was some positive news, too. Google Cloud revenue more than doubled to $30.71 billion. However, this was not enough to offset weaker results from the advertising business and concerns about spending.
Do you think spending and competition will continue to put pressure on the company's valuation?
I also have $GOOGLB in my bStocks portfolio. I'm holding for now and want to see how the market reassesses the company's results.
#GOOGL #alphabet #AI #bStocks #Investing
