This Tech Giant Is Investing $75 Billion on AI. Is It Time to Buy?
Despite ongoing market turbulence, this AI-powered big tech stock is a compelling investment.
On Feb. 4, Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) reported mixed performance in the 2024 fourth quarter. Revenue was up 12% year over year to $96.5 billion, lower than the Wall Street target of $96.67 billion. Earnings per share (EPS) rose 31% to $2.15, barely beating analysts' consensus estimate of $2.13.
Investors were mainly disappointed with Google Cloud's top line as revenue of $12 billion fell short of the consensus estimates of $12.2 billion. The market has also raised concerns about the future of Alphabet's free cash flows and margins in the face of aggressive plans for capital expenditures (capex) of $75 billion in 2025, a dramatic increase from $52.5 billion in 2024.
Not surprisingly, shares are down more than 9% since the earnings release.
