Big Tech earnings slam into a market in revolt over AI spending
For years, US technology giants had a tacit agreement with investors: The companies could spend lavishly on artificial intelligence, and the stock market would reward them long as their revenues were rising. Nevermind that Google’s parent also delivered a whopping 82% increase in cloud-computing revenue, far surpassing Wall Street estimates. Investors were worried about all the spending.
- ▪For years, US technology giants had a tacit agreement with investors: The companies could spend lavishly on artificial intelligence, and the stock market would reward them long as their revenues were rising.
- ▪Nevermind that Google’s parent also delivered a whopping 82% increase in cloud-computing revenue, far surpassing Wall Street estimates.
- ▪Investors were worried about all the spending.
2 outlets in our directory ran this story, first to last over 3 hours. All of the coverage we found sits in one bucket: centre. That one-sidedness is itself worth noticing.
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For years, US technology giants had a tacit agreement with investors: The companies could spend lavishly on artificial intelligence, and the stock market would reward them long as their revenues were rising. That deal is suddenly breaking down.Recommended Video Alphabet Inc. shares plunged more than 7% on Thursday, their worst day in over a year after the company raised its capital expenditures in 2026 to as much as $205 billion and reported that free cash flow turned negative in the second quarter for the first time since its 2004 initial public offering. Nevermind that Google’s parent also delivered a whopping 82% increase in cloud-computing revenue, far surpassing Wall Street estimates. Investors were worried about all the spending.
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