Why does it raise alarm? Pretty sure all this spending was planned.
Also the ~4% drop is really not a big swing for earnings. This looks like a non story
If there is a huge demand for shipping goods internationally, investing in ships and planes isn't burning money.
There is massive demand for compute in the world right now, Google is investing in that area. That's a good thing.
> "If there is a huge demand for shipping goods internationally,
> investing in ships and planes isn't burning money.
> There is massive demand for compute in the world right now"
There's enough hype and exuberance in the AI market that it's likely some players are going to be left holding the bag with a write-down on assets.
No return? Annual earnings have kept increasing at 20-40% for the last 4 years.
Plus there's this:
https://www.theregister.com/paas-and-iaas/2026/07/22/google-...
> Google Cloud is killing it
> It's Alphabet's fastest-growing business and now makes up more than a fifth of the juggernaut's revenue and operating profit
Think of it as the difference between the waiter describing dishes with ingredients you don't really understand (or maybe even taste) vs presenting the bill for the meal.
For example, Apple the year before the iPhone got launched isn’t an attractive investment. They’re a one hit wonder with the iPod saving them from bankruptcy and the market has been fully saturated. The year the iPhone gets released their balanced sheet hasn’t really changed.