Google parent Alphabet tumbles after profit disappoints, warns AI is battering its cash flow

Source: New York Post

Google parent Alphabet on Wednesday missed Wall Street profit and revenue expectations, and AI spending accelerated its cash burn, sending its shares down more than 10% in extended trading. Capital expenditures, driven by AI, will increase significantly in 2027, said Chief Financial Officer Anat Ashkenazi, adding that this year’s capex forecast was unchanged. She said she also expected near-term margin pressure from the use of third-party cloud capacity.