On February 4, 2025, Alphabet Inc. reported a 30% increase in Google Cloud revenue to nearly $12 billion, but the growth was below analysts’ expectations, leading to a 6.6% drop in its stock price.
Despite overall revenue rising 12% year-over-year to $96.5 billion and net income increasing by 28% to $26.5 billion, concerns grew over Alphabet’s planned $75 billion investment in AI infrastructure. Investors worry about profitability as the company faces strong competition from Microsoft and Amazon in the cloud sector.