Alphabet Stock Drops Despite Strong Earnings As Cloud Growth Slows, But Analysts See AI Driving Future Gains
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Shares of Alphabet tumbled over 9% as its cloud revenue fell short of expectations, despite better-than-expected quarter overall.
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Analysts say investors shouldn't worry, as cloud is just 11% of revenue, while AI could boost growth.
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CEO attributed weaker cloud gains to customers optimizing spending amid economic uncertainty.
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Analysts expect cloud softness to be "transitory" based on Amazon's cloud business.
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Alphabet playing catch-up to Microsoft's early mover advantage in AI tools like ChatGPT.
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