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Broadcom Stock Jumps After The Close: Here's Why - Broadcom (NASDAQ:AVGO)
- On Wednesday after the market close, Alphabet announced it expects to roughly double capex to between $175 billion and $185 billion in 2026.
- Facing demand that outstrips supply, Alphabet is accelerating investment as cloud and AI demand fuels unmet customer needs in its strategic sweet spot.
- During the earnings call, Alphabet disclosed Google Cloud revenue of $17.7 billion and sold over 8 million paid seats of Gemini Enterprise, with the Gemini app now having more than 750 million monthly active users.
- Investors reacted nervously as Alphabet shares fell as much as 3% in extended trading and the capex plan sharply dampened sentiment.
- Longer term, valuation and payback timelines frame the debate as investors ask whether companies can recoup these massive AI investments, with shares up 65% over the past year and trading for less than 30 times forward earnings.
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Google is going for the jugular — by doubling capex and outspending the rest of Big Tech
Google reported its fourth-quarter earnings on Wednesday.Kevin Carter/Getty ImagesAlphabet's stock fell 2% after it reported Q4 earnings on Wednesday.The parent company of Google is aggressively ramping up capital expenditures for AI infrastructure.All of Big Tech is spending more as the AI race continues.Alphabet is dramatically increasing its chip and data center spending this year, underscoring its commitment to its AI bet amid Wall Street co…
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Total News Sources16
Leaning Left4Leaning Right2Center4Last UpdatedBias Distribution40% Left, 40% Center
Bias Distribution
- 40% of the sources lean Left, 40% of the sources are Center
40% Center
L 40%
C 40%
R 20%
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