Alphabet, the parent company of Google, reported an earnings beat, but its stock fell due to concerns over rising capital expenditures and delays in its latest Gemini AI model. The company’s cloud business saw over 80% growth, but its capex estimates were raised, with AI-linked investments expected to top $200 billion this year.
Market Impact
The news had a mixed impact on the market, with chip-heavy South Korean stocks rising over 4% and European shares edging lower. Tesla’s stock also fell 4% after reporting its first negative free cash flow in over two years. Oil prices, meanwhile, surged toward $98 per barrel amid the ongoing conflict in the Gulf and shipping disruptions in the Red Sea.
The European Central Bank is set to decide on interest rates later today, with markets expecting a hawkish stance due to rising natural gas prices and inflation concerns. Futures markets are pricing in two ECB hikes by year-end and two Federal Reserve hikes within nine months.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
