Alphabet Stock Falls 8% Even as Cloud Sales Double: Is AI Spending the Problem?

Alphabet shares fell 7.79% in after-hours trading on Wednesday, even as Google Cloud sales more than doubled to $30.7 billion. Spending more than doubled too. The Google parent spent $51.4 billion on data centers and other capital projects in three months. That was more cash than its business brought in, leaving free cash flow at minus $9.1 billion. Cloud Sales Doubled, and So Did Spending Total revenue rose 25% to $127.6 billion, according to Alphabet’s results . Google Cloud grew 103%, and its profit margin widened to 36.2% from 23.7% a year earlier. Still, the headline numbers fell short. Revenue landed just below the $127.93 billion analysts expected. Operating income of $40.58 billion missed the $43.16 billion estimate. Capital spending jumped 114% from a year earlier.

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