Alphabet Inc (NASDAQ:GOOG), Google’s parent company, lost $180 billion in market value as its shares tumbled 7% in after-hours trading on Tuesday. The sell-off followed weaker-than-expected Q4 revenue and a big spending forecast that unsettled investors.
Despite beating profit expectations with $2.15 per share in earnings, Alphabet’s $96.5 billion in revenue fell just short of the $96.7 billion Wall Street expected.
The biggest disappointment came from Google Cloud, a key artificial intelligence (AI) growth area, which posted $11.96 billion in sales, missing forecasts of $12.19 billion.
Adding to concerns, Alphabet projected $75 billion in capital expenditures for 2025, far higher than analysts’ $58.8 billion estimate.
This mirrors a trend of rising AI investments among tech giants like Meta.
After hours, the stock fell $15.11 to $192.60, valuing the business at $2.57 trillion.