Alphabet Inc. reported strong revenue growth in Q2 but faced a historic stock selloff due to its record $44.9 billion capital expenditure on AI. This heavy investment caused free cash flow to turn negative for the first time since 2004, with CapEx expected to reach 41% of revenue by year-end. Management raised full-year CapEx guidance to $195–205 billion and warned of ongoing cash flow pressure from AI infrastructure spending. While core businesses like Search, YouTube, and Cloud remain profitable, investors are uncertain if the massive AI bet will generate adequate returns.
Pomerantz LLP is investigating Alphabet for possible securities fraud following delays in launching its Gemini 3.5 Pro AI model and disappointing training results. The stock dropped 4.4% after the delay news and fell another 6.89% after Alphabet repo...
Major tech companies like Google, Microsoft, Meta, Amazon, and Apple are set to spend about $700 billion on AI infrastructure in 2026, up from $410 billion last year. Nvidia's CFO projects this spending could reach $3-4 trillion annually by the end o...
The GoodHaven Fund reported that its two largest detractors during the recent period were Builders FirstSource and Lennar, both long-term winners in the domestic housing market. The housing market continues to face difficulties due to affordability i...
The S&P 500 industrials sector is trading at a forward price-to-earnings ratio above 30, significantly higher than its long-term average of around 20, fueled by investments in AI data center infrastructure and defense technology. Massive spending on ...
Alphabet's stock has fallen about 14% in under two weeks due to market concerns over rising capital expenditures and negative free cash flow. However, Google Cloud is rapidly growing with a $514 billion backlog and operating margins above 35%, rivali...
