Google slammed with $ 200b stock shares over the fear of it, slowing income growth

Google shares Alphabet Parents were immersed from more than 8%-erase more than $ 200 in market value-as the search giant discovered plans for a mass increase in the costs associated with it, despite a slowdown in revenue.

Google and other US technology firms are facing intensive investors control over their spending plans after Chinese start Deepseek revealed last month that he had trained a model for less than $ 6 million – apparently without access to the best Nvidia chip supplier device.

The alphabet shares in noon trade recently had turned 7.6% to $ 190.70. If the sale of shares holds, this would delete all the profits of the alphabet shares since the beginning of the year.

CEO Sundar Pichai said Google will spend a $ 75 billion on capital spending only in 2025 – up to $ 52.5 billion last year and much higher than the number expected by analysts.

“If this is the new trend for the alphabet, then investors have to worry,” said Da Davidson Gil Luria analyst.

Pichai said Deepseek had done “very, very good job”, but claimed that Google’s products were “some of the most efficient models there”. He also defended Google’s spending plans.

“The cost of use in fact [artificial intelligence] It will continue to go down, which will use more used cases, “Pichai added.” And this is the space of options. “

Income from the Alphabet Cloud Calculation Division increased 30%-less than 35% jump from the company’s previous quarter and worse than Wall Street was expected.

In general, Google Parent reported quarterly income increased 12% to $ 96.5 billion – its lowest growth rate since 2023.

“While the Cloud segment gave an increase in revenue of 30%+ for a second consecutive quarter, the results were just below the investors’ expectations,” said analyst Wedbush Dan Iva in a note to customers. “That said, the management comment was positive and indicated that the request exceeded the capacity available in the quarter.”

“The most aggressive pace of investment should facilitate capacity restrictions as the demand of it continues to escalate,” Ives added.

Google is one of the large technology giants that have increased large investment in the infrastructure of it while competing against China – and one -another – to develop advanced models.

Investors were afraid that Deepseek’s ultra -efficient model signaled that American technology giants had too much in chips and other infrastructure.

However, Meta and Microsoft each doubled in their spending plans in profits last week – with executives and analysts alike claiming that access to data centers and advanced chips would be a substantial advantage over time .

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