Alphabet Boosted by AI, Cloud Demand
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Alphabet shares rose more than 3% in early trading on Thursday as the Google parent's earnings underscored a key message to investors: AI spending is climbing, but so are the returns.
Google parent Alphabet plans to spend $10 billion more in capital expenditures this year than previously anticipated as the company works to meet surging demand for Google Cloud.
Wall Street inched to more records on Thursday as gains for Alphabet and artificial intelligence stocks helped make up for Tesla's steep tumble.
Investors seem confident that the investment in AI can finally be properly monetized and translate into higher revenue.
Alphabet's undervaluation, strong fundamentals and growth in Google Cloud and AI offer long-term upside. Read here for more on GOOG stock.
"The price to the AI show keeps climbing for hyperscalers": Fool chief investment officer Andy Cross noted Alphabet's capital expenditure is soaring ahead of buybacks. Buyback spend this quarter reached just 0.6 times capex – last year it came in at 1.18 times.
AI upstarts were supposed to lay siege to Google’s search-engine dominance. So far, the defense is winning, writes Asa Fitch, following second-quarter results from parent company Alphabet. A: Google’s
Asian shares are lower after Wall Street inched to more records as gains for Alphabet and artificial-intelligence stocks offset a steep tumble for EV-maker Tesla.
Alphabet , faced with unprecedented threats from AI rivals, will be keen to assure investors this week that the company's own spending on the technology is helping it dig a deeper moat around its search and advertising businesses.
Some pundits are underplaying the big picture when it comes to shares of Alphabet.
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