Google stock falls after earnings miss

Alphabet's stock experienced a 7% drop in after-hours trading as the company missed profit projections and increased its AI spending beyond $50 billion in the third quarter, leading to concerns about the hyperscaler's ability to generate sufficient revenue to justify its debt-fueled infrastructure investments. In contrast, Microsoft's cloud revenue surpassed estimates, resulting in a jump in its shares and reinforcing confidence in the tech giant's AI strategy.

Portfolio manager Brendan Ruberry noted the heightened fear surrounding the spending, with Microsoft benefiting from its focus on financial discipline.

Brief written by urgent.news from Semafor's own syndicated text. Machine-written — may contain errors; check the original before relying on it.