WS #16507
Alphabet's earnings miss, driven by AI competition eroding search revenue, has dragged on Nasdaq futures and triggered a record post-earnings loss for the stock. This is compounded by Google and Microsoft delaying AI capex forecasts, suggesting a potential decoupling of AI spending from immediate revenue returns. ServiceNow's 17% selloff despite 20% growth further indicates a broad repricing of high-multiple software valuations as investors demand clearer monetization paths.
Tech Selloff and AI Revenue Concerns
Alphabet's earnings miss, driven by AI competition eroding search revenue, has dragged on Nasdaq futures and triggered a record post-earnings loss for the stock. This is compounded by Google and Microsoft delaying AI capex forecasts, suggesting a potential decoupling of AI spending from immediate revenue returns. ServiceNow's 17% selloff despite 20% growth further indicates a broad repricing of high-multiple software valuations as investors demand clearer monetization paths.