Explore the latest developments concerning Google burning through.
Google burning through cash with spiralling AI costs
Shares of Google and Tesla plunged on Thursday as investors were spooked by the ever-increasing amounts of money being spent on artificial intelligence (AI).
Google's parent company Alphabet saw its share price drop by nearly 7%, while Elon Musk's electric vehicle-maker Tesla saw its stock fall 14.5%.
Both reported negative free cash flow – the money retained after paying for operations and investments – in financial results on Wednesday, alongside promises to spend billions more in the months and years to come.
It was the first time Google had seen the cash metric turn negative since it became a public company in 2004, according to its financial records.
Stock Market Today, July 23: Alphabet Slides 7% After Announcing 2026 Capex of Roughly $200 Billion
Alphabet (NASDAQ:GOOGL), a search, ads, video, cloud, and AI infrastructure platforms provider, closed at $317.69, down 7.13%. Investors are reacting to higher AI-related spending and watching whether cloud growth can support returns on that build-out. Trading volume reached 68.6M shares, coming in about 111% above its three-month average of 32.5M shares. Alphabet IPO'd in 2004 and has grown 12,557% since going public.
The S&P 500 (SNPINDEX:^GSPC) fell 1.20% to 7,409, while the Nasdaq Composite (NASDAQINDEX:^IXIC) dropped 2.15% to 25,138. Among internet content and information, digital advertising, and cloud services rivals, Microsoft closed at $381.58, down 2.24%, and Meta Platforms finished at $606.10, down 3.36%.
On the surface, it was a great-looking quarter for Alphabet as:
Sejoy Sonic Electric Toothbrush for Adults Dental Rechargeable 5 Cleaning Modes Sonic Toothbrush Personal Care Appliances
The dynamic landscape of current events often brings forth significant discussions. Monitoring these developments provides crucial insights.
For more detailed information, explore updates concerning Google burning through.
