Alphabet, Amazon and Microsoft report earnings: AI spending weighs on investor reaction
Redacción IvokaOct 30, 7:30 AM 4 min
Gemini reached 1 billion users and Google's cloud grew 103%, but Alphabet shares fell nearly 11% after the company missed sales and profit expectations; Amazon shares dropped 6.5% after it reported a sharp drop in free cash flow.
Three of the big tech companies reported results this week, and the common theme was how much it costs to build AI.
Alphabet. The transcript of its investor call says the Gemini app reached 1 billion users and is the fastest-growing product in Google's history. Google Cloud revenue rose 103% to $30.7 billion. Even so, Bloomberg reports shares fell nearly 11% because the company missed sales and profit expectations, a sign, according to Bloomberg News, that Wall Street isn't seeing enough return on its AI bets.
Amazon. According to Axios, its shares fell 6.5% in after-hours trading after it reported a sharp drop in free cash flow tied to AI investments. It expects $220 billion in capital spending in 2026 and to spend «meaningfully more» in 2027. CEO Andy Jassy said customers are using capacity almost as fast as it is installed.
Microsoft. One report cites quarterly profit of $36.6 billion while the company offers voluntary separation packages to eligible employees in Canada, India, the United Kingdom and the United States, amid its investment in data centers and chips.
The big picture. Meta, Alphabet and Amazon are estimated to spend more than $700 billion collectively this year on AI chips and infrastructure.
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