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Google owner Alphabet's shares tumble 10% after it misses profit forecasts and AI spending deepens its cash burn to $9bn

A Google DeepMind promotional screen introducing Gemini, the AI brand whose new Gemini 4 Carbon model Sundar Pichai unveiled just before Alphabet's earnings call as its shares tumbled over 10%.
A Google DeepMind promotional screen introducing Gemini, the AI brand whose new Gemini 4 Carbon model Sundar Pichai unveiled just before Alphabet's earnings call as its shares tumbled over 10%.

Chief Financial Officer Anat Ashkenazi warned that capital expenditures will climb steeply in 2027, with short-term margin pressure coming from third-party cloud capacity. Alphabet's shares dropped over 10% in after-hours trade following the results, wiping tens of billions from the $4tn company's market value. Asian markets were rattled overnight as the selloff dragged Wall Street futures lower ahead of Amazon and Intel results later Thursday.

An $8.7bn loss on equity investments, attributed to its SpaceX stake, compounded the damage.

Google Cloud was the one bright spot, with revenue more than doubling to $30.7bn, driven by AI chip sales.

CEO Sundar Pichai moved to reassure investors by announcing a new Gemini 4 Carbon AI model just before the earnings call.

MoreThe TelegraphGoogle shares slump amid fears of AI overspendingFinancial TimesGoogle shares tumble 10% after $51bn AI outlay deepens cash burnHuffPostGoogle Stock Tumbles After Revenue MissReutersAlphabet shares fall after revenue miss, cash burn worsensAPGoogle misses revenue expectations, Alphabet stock sinks in early after-hours tradingNYTAlphabet’s Revenue Rises 25% as Profit FallsThe 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 flowIrish TimesAlphabet stock sinks as search woes cause revenue miss
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