Google stock falls after earnings miss

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Alphabet’s stock fell 7% in after-hours trading Wednesday after the company missed profit projections and increased its AI spending past $50 billion in the third quarter.
The resulting cash burn stoked investors’ fears that hyperscalers aren’t generating enough revenue to justify their debt-fueled infrastructure investments.
Meanwhile, Microsoft shares jumped after the company’s cloud revenue beat estimates, bolstering confidence in the tech giant’s AI play.
“The companies that can show they are producing cash for shareholders are more in the driver’s seat in this market than companies that aren’t,” a portfolio manager told Bloomberg.
“The fear gauge is clearly on high alert about all this spending,” and Microsoft “is getting a benefit because it has an eye toward that discipline.”

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