Fortune·4 min read·medium
Big Tech earnings slam into a market in revolt over AI spending
J
Jeran Wittenstein, Ryan Vlastelica, Bloomberg
✦AI Summary
Investors are reacting negatively to the massive capital expenditures by Big Tech companies on artificial intelligence, despite strong revenue growth. Alphabet's stock dropped significantly as market sentiment shifted from rewarding AI investment to prioritizing immediate cash flow and profitability.
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.
technologybusinesseconomy
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