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

Google shares parent Alphabet were plunged by more than 8%-throwing more than $ 200 billion in market value-after research giant revealed plans for a mass increase in costs associated with it, despite a slowdown .

Google and other US technology firms are facing intensively control of investors on 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 – from $ 52.5 billion last year and much higher than the number exposed by analysts.

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

Pichai said Deepseek had done “very, very good work”, but ensured 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 cases used, “Pichai added.” And this is the space of opportunities. “

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 that quarterly revenues increased 12% to $ 96.5 billion – the lowest level of its growth 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 Ves in a note to customers. “That said, the management comment was positive and showed that the question of the capacity available in the quarter.”

“The most aggressive peace of investment should facilitate capacity restrictions as the demand is continued 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 think that Deepseek’s ultra-efficiency 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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