Alphabet, facing investor scrutiny over its substantial AI spending, is likely to report slower revenue growth due to reduced performance in its advertising and cloud sectors. With an estimated capital expenditure of $50 billion in the previous year and further spending planned for 2025, Alphabet aims to enhance its cloud services and AI-driven features. Investors are closely monitoring these expenditures, especially as Google Cloud’s growth is expected to decelerate. Executives from tech giants, including Microsoft, emphasize the necessity of such investments to gain a competitive edge in the evolving AI landscape.
Alphabet's capital expenditure is estimated to have been $50 billion for last year, with more planned for 2025 to support its cloud expansion and AI-driven search features.
Sustaining this balancing act will be a critical and investors will want to see evidence of this, as elevated investment is expected to continue amid slowing growth.
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