economy
What worried investors about Alphabet
It's the first of the hyperscalers to report earnings, and investors may be growing leery of the scale of AI spending.
TL;DR
- Alphabet's shares fell after reporting strong second-quarter results.
- The company raised its capital expenditure guidance for the year to $195 billion-$205 billion.
- Alphabet posted a quarter of negative free cash flow for the first time since its 2004 IPO.
- A significant portion of Alphabet's net income gain was from an unrealized investment gain on equity securities.
- Investors may be concerned about the profitability of recent AI investments despite strong overall numbers.