WS #16521
Alphabet shares plummeted nearly 13% after missing earnings expectations and revealing decelerating ad growth, despite a 103% surge in Google Cloud revenue. The market is punishing the company for heavy AI capital expenditures that are not yet translating into bottom-line growth, signaling a broader skepticism toward big tech's AI monetization timeline. Microsoft reported Azure cloud growth of 48%, exceeding Wall Street expectations, while Eli Lilly surged on a raised sales forecast. These results provide a bullish counter-narrative to the broader tech selloff, highlighting that companies with dominant cloud infrastructure and strong pharmaceutical pricing power are still attracting capital.
Alphabet Selloff & AI Capex Doubts
Alphabet shares plummeted nearly 13% after missing earnings expectations and revealing decelerating ad growth, despite a 103% surge in Google Cloud revenue. The market is punishing the company for heavy AI capital expenditures that are not yet translating into bottom-line growth, signaling a broader skepticism toward big tech's AI monetization timeline.
Microsoft reported Azure cloud growth of 48%, exceeding Wall Street expectations, while Eli Lilly surged on a raised sales forecast. These results provide a bullish counter-narrative to the broader tech selloff, highlighting that companies with dominant cloud infrastructure and strong pharmaceutical pricing power are still attracting capital.