Alphabet announced US$75 billion in 2025 capital expenditures, far exceeding the US$57.9 billion that analysts expected. The investment is “directly driving revenue” because it helps customers, Alphabet CEO Sundar Pichai said on the earnings call with investors.
Google parent Alphabet posted fourth-quarter revenue that missed analysts’ expectations after growth in its cloud business slowed, raising concern from investors about the billions the company is spending on artificial intelligence.
Quarterly sales, excluding partner payouts, were US$81.6 billion ($110.4 billion), Alphabet said Tuesday in a statement. Analysts had projected US$82.8 billion, according to data compiled by Bloomberg. The shares fell more than 9% in after-hours trading.
