Alphabet’s $75 Billion Spending Surprised Wall Street. How the Stock Can Recover. - Barron's
1. GOOGL's Q4 earnings led to a 7.4% drop in shares. 2. Capital expenditure guidance of $75 billion exceeds expectations by $18 billion. 3. Heavy AI infrastructure spending raises investor concerns about returns and search growth sustainability. 4. Competitors like Microsoft and Meta are significantly increasing AI investments. 5. Analysts await clearer signals regarding Google's AI monetization and cloud service capacity.