Alphabet Beats Earnings Expectations But Investors Worry About AI Spending
Alphabet reported strong quarterly earnings that exceeded forecasts, but announced large artificial intelligence investments for 2026 that concerned investors.
Alphabet released its fourth-quarter financial results and exceeded revenue and profit expectations. However, investors reacted nervously to the company's spending plans for 2026.
Alphabet predicts it will spend an average of 180 billion dollars, which is much higher than the 119.5 billion dollars analysts expected. The CEO explained that these investments are necessary to compete in artificial intelligence. In the fourth quarter, Alphabet's revenue increased 18% to 113.8 billion dollars.
Google Cloud had strong growth of 48%, reaching 17.7 billion dollars. Google's search and YouTube business grew 14% to 95.9 billion dollars.
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