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Alphabet struggles in AI race as Meta warns of high costs and stock lags behind market gains

Market News
27 Oct 2026, 17:18 WIB
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Bearish
Alphabet struggles in AI race as Meta warns of high costs and stock lags behind market gains

Alphabet's stock has underperformed this year, remaining nearly flat while the S&P 500 rose 13%, due to heavy investments in AI that have yet to yield strong enterprise adoption or clear leadership success. Meta revealed it may spend up to $635 billion on AI, causing its shares to drop 7%, highlighting the risks in the AI sector. Alphabet's DeepMind project faces leadership changes and delays, and its Gemini AI product, despite wide availability, has not secured significant enterprise contracts. The company earns $1 billion annually from a partnership with Apple, which is small relative to its size, and its core search business faces cannibalization from AI-driven results, limiting growth potential.

Alphabet's stock price on Pluang is USD 316.42 as of Oct 27, 2026 21:31 WIB, showing a modest 0.71% gain in the last day despite the company's AI challenges. Meta shares are priced at USD 625.21 with a slight 0.85% decline over the same period, reflecting some investor caution. Pluang data shows a strong buy interest in Alphabet at 72% compared to 55% for Meta, indicating differing investor sentiment between the two AI-focused giants.

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