Alphabet Stock Slipped After Q2 Earnings. Here’s What Investors Need to See in Q3.
Wall Street can be a little impatient with the massive amounts of money that technology companies are spending on artificial intelligence. Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) got a taste of that impatience when it reported its second-quarter earnings in July.
The Google parent delivered impressive results, including a whopping 82% increase in Google Cloud revenue. But investors weren’t entirely satisfied, particularly after Alphabet raised its capital expenditure (capex) guidance again. Shares fell roughly 6% following the report.
I believe that Wall Street is in the “show-me” phase of AI spending. Investors aren’t simply rewarding companies for announcing ambitious AI projects anymore. They want tangible evidence that those investments are generating meaningful returns.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.