Alphabet posts 25% revenue jump, stock drops nearly 10%
Google's latest earnings are a mixed bag: CEO Sundar Pichai is celebrating big wins in Search, Cloud, and AI, but Wall Street isn't thrilled.
Alphabet's revenue jumped 25% this quarter, hitting a $500 billion annual run rate.
Still, profits fell to $26.17 billion as the company poured over $50 billion into AI, leading to a nearly 10% stock dip.
Alphabet cash flow negative $9.07B
Despite strong product growth (Cloud revenue more than doubled to $30.7 billion and Search climbed 12%), Alphabet faced some tough financial setbacks.
Free cash flow fell way short of expectations at negative $9.07 billion, capital spending lagged at $51.36 billion, and debt ballooned to $125.1 billion (up nearly sixfold).
Even with these money worries, Google hit milestones like one billion Gemini app users and over 150 million YouTube Music and Premium subscribers worldwide.