Alphabet stock dropped 7% after Q4 earnings due to concerns over increased spending.

From Nasdaq: 2025-02-05 18:37:00

Alphabet GOOGL Stock Selloff: Despite exceeding Q4 expectations, Alphabet shares dropped over 7% due to concerns about increased spending and slower cloud growth compared to tech peers Amazon and Microsoft.

Alphabet’s Q4 Results: Sales reached $81.62 billion, up 12% from the previous year, with Google Cloud revenue rising 30% to $11.95 billion. Net income hit $26.5 billion or $2.15 per share, beating expectations and marking an EPS increase of 31% from the prior period.

Alphabet’s CapEx Guidance: Capital expenditures are expected to rise by nearly 43% in FY25 to $75 billion to support AI efforts. With a strong balance sheet and a “cheap” valuation, Alphabet aims to compete with cloud market leaders Amazon and Microsoft.

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