Alphabet Shares Plunge After Cloud Revenue Misses Expectations

The tech giant's market value dropped by $190 billion as quarterly results fell short of analyst forecasts despite strong advertising growth.

Alphabet's stock fell over 7% in after-hours trading, erasing $190 billion in market value, following disappointing quarterly earnings.
The company's cloud revenue grew 30% to $11.95 billion but missed analyst expectations of $12.2 billion, raising concerns about its AI-driven growth strategy.
Alphabet announced plans to increase investments to $75 billion in 2025, exceeding Wall Street's forecast of $58 billion, to stay competitive in the AI race.
Advertising remains Alphabet's core revenue driver, with Google Search generating $54 billion and YouTube reaching a record $10.5 billion in the quarter.
Despite the setback, Alphabet reported a 28% year-over-year increase in net profit to $26.54 billion and a 12% rise in overall revenue to $96.47 billion.