Alphabet Stock Falls 8% Even as Cloud Sales Double: Is AI Spending the Problem?
AI summary
Alphabet shares dropped 8% after the company reported $51.4 billion in AI spending that wiped out its free cash flow, even as cloud sales doubled with 103% growth. The reaction shows investors are increasingly unwilling to fund heavy AI capex without near-term returns. For crypto traders, the selloff is a signal on AI-related equity risk appetite, which has been loosely correlated with sentiment in AI-token and compute-adjacent crypto names.
