Alphabet updates AI spending forecast
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Alphabet (GOOGL) is delivering impressive growth across its core businesses, thanks largely to its aggressive push into artificial intelligence (AI). For instance, Google’s parent company, Alphabet, delivered better-than-expected second-quarter financial results on Wednesday,
Alphabet posted its second-quarter earnings after Wednesday's closing bell, beating on the headline numbers. Investors will be focused on the state of the search business as AI answers become more prevalent,
Alphabet Inc. said demand for artificial intelligence products boosted quarterly sales, and now requires an extreme increase in capital spending — heightening pressure on the company to justify the cost of keeping up in the AI race.
Most leaders in the tech industry owe their wealth to founding equity stakes in their platforms, which Google’s Sundar Pichai does not have.
The stock market is currently fairly expensive, with the broader market, as measured by the S&P 500, trading at 23.7 times forward earnings. That means the best-performing stocks of the second half of the year will likely be undervalued today or have jaw-dropping growth to propel them to new heights.
Asian shares are lower after Wall Street inched to more records as gains for Alphabet and artificial-intelligence stocks offset a steep tumble for EV-maker Tesla.
It's also likely that the pullback in ServiceNow on Friday was due to some profit-taking by opportunistic investors. The market was clearly impressed with the company's second-quarter earnings report published late Wednesday; it notched convincing beats on both the top and bottom lines, after all.
Tesla’s star is fading -- here’s why two AI powerhouses with stronger growth and better valuations deserve your attention instead.