Good is no longer good enough in the AI age: Amazon and Alphabet disappoint investors
The two tech giants are showing unusual weaknesses in their traditional business. This gives critics food for thought, who consider the strong expansion of AI infrastructure to be unsustainable.
Tech giants Alphabet and Amazon reported disappointing quarterly results, with Alphabet's shares plummeting 13% and Amazon's shares falling 4-5% in after-hours trading. Alphabet's traditional search business suffered, while Amazon's online shopping sales were weaker than expected, with the company citing high living costs and rising gasoline prices as factors.
Both companies are heavily investing in AI infrastructure, but their profitable core businesses are showing signs of weakness, raising concerns about the sustainability of these investments. Alphabet invested over $51 billion in AI infrastructure, resulting in a negative cash flow of $9.1 billion, while Amazon's cash flow was -$42.4 billion over the past 12 months.
Written by urgent.news from NZZ Wirtschaft's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
