WS #16508
Alphabet's earnings miss reflects a deceleration in search monetization as AI competition intensifies, while ServiceNow's 17% selloff despite 20% growth signals a broader repricing of software multiples. Adding to the pressure, Microsoft is launching a $10 billion bond offering to fund AI investments, highlighting the massive capital costs of the AI arms race. This contrasts sharply with Mastercard's strong Q3 beat, which suggests consumer spending remains robust but is being captured by payment infrastructure rather than discretionary tech growth.
Tech Earnings & AI Capital Cost
Alphabet's earnings miss reflects a deceleration in search monetization as AI competition intensifies, while ServiceNow's 17% selloff despite 20% growth signals a broader repricing of software multiples. Adding to the pressure, Microsoft is launching a $10 billion bond offering to fund AI investments, highlighting the massive capital costs of the AI arms race. This contrasts sharply with Mastercard's strong Q3 beat, which suggests consumer spending remains robust but is being captured by payment infrastructure rather than discretionary tech growth.