Posted 1/31/2024, 10:36:00 PM
Alphabet Stock Drops As AI Spending Weighs Despite Strong Earnings
- Alphabet stock fell over 7% as AI investments increase costs despite beating expectations on metrics
- Advertising remains over 50% of Alphabet's revenue, but growth slowed raising questions about AI's impact
- AI seen as long-term opportunity to improve Google services, Google Cloud, DeepMind across Alphabet
- Cloud computing earned first-ever quarterly profit in 2023, partly attributed to AI contribution
- Google expected to release advanced AI model Gemini Ultra later this year