Alphabet's AI Spending Triggers Market Selloff and Investor Nerves
TL;DR Summary
Alphabet's second-quarter AI spend surged to $44.9B and full-year capex guidance was raised to $195–$205B, driving free cash flow negative and a 7.1% stock drop—the worst day since May 2025—as investors fret about the cost of AI leadership; Tesla also suffered as AI-related spending climbed and earnings missed, while defense names like Lockheed Martin and RTX rose on strong demand and GM jumped after beating earnings and raising guidance, all amid higher oil, yields, and geopolitical risk.
- Move over oil. AI leader Alphabet's spending sends investors running Detroit Free Press
- Big Tech Earnings Slam Into a Market in Revolt Over AI Spending Bloomberg.com
- Alphabet flops, Intel shocks, and Tesla tanks: AlphaSpace weekly recap Yahoo Finance
- Google and Tesla shares plunge as AI spending rattles markets BBC
- S&P 500: Alphabet Reveals Scary Risk — Big Companies Bleed Tons Of Cash Investor's Business Daily
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