Google Reports Negative Earnings, Sends Shockwaves Across Market
- Alexangel Ventura
- Feb 5
- 1 min read
The big tech company Alphabet Inc. (Google) reported very underwhelming fiscal data, which has send shockwaves across the stock market Wednesday morning.
The company's Cloud business, a computing service built on artificial intelligence, reported slower growth and lower-than-expected earnings for the company, highlighting the dwindling consumer demand for artificial intelligence and other technology programs.
Most importantly, this program is the best indicator of how the implementation of AI technologies is having on the company. Powered by Google Gemini, the site promises to revolutionize the consumer software experience. Although lagging behind Microsoft and Amazon's AI programs, it remains one of the largest AI-powered systems on the market.
Additionally, Google has been the target of numerous lawsuits in recent months. Concerned over possible violations of key antitrust laws, the People's Republic of China launched several investigations on the company's operations in the Chinese market. It has caused many investors to worry about the company's continued presence in one of its largest bases of consumers.
Shares of Alphabet Inc. (GOOG) dropped 7.3% in the pre-market alone, with further losses in share price expected. The price per share seemed to have consolidated around $192 per share, falling well below recent highs in the $200-210 range.
Other tech investors, especially within the Nasdaq, sold their stocks off out of fear of weakness in American AI development and integration.
