The Newshound

Alphabet shares tumble more than 10% after Google owner misses profit forecasts and AI spending deepens its cash burn

Alphabet's net profit crashed 25% year-on-year to $26.2bn, far below analyst forecasts, as an $8.7bn loss on its equity investments — largely blamed on its SpaceX stake — savaged the bottom line.

Free cash flow swung to a deficit of $9.07bn, against analyst expectations the figure would come in close to zero.

AI spending is set to accelerate further, with chief financial officer Anat Ashkenazi warning capital expenditure will rise significantly in 2027.

Google Cloud was the lone bright spot, with revenue more than doubling to $30.7bn and operating income tripling to $11.1bn.

MoreReutersAlphabet shares fall after revenue miss, cash burn worsensAPGoogle misses revenue expectations, Alphabet stock sinks in early after-hours tradingThe GuardianInvestors turn on Google owner Alphabet after profit miss, ad slowdown and high spendingNY PostGoogle parent Alphabet tumbles after profit disappoints, warns AI is battering its cash flow
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