Alphabet Earnings Beat Expectations. Why the Stock Is Tumbling. - Barron's

1. Alphabet's stock dropped 7% after earnings beat expectations but missed revenue estimates. 2. Cloud revenue grew 30%, down from 35% growth, affecting market sentiment. 3. Alphabet plans $75 billion in capital expenditures, focusing on AI and technical infrastructure. 4. Investments in AI raise questions about their necessity amidst intense competition. 5. YouTube's ad revenue exceeded expectations, contrasting with Alphabet's overall performance.