SAN FRANCISCO: Alphabet Inc. impressed investors with robust quarterly results , as rival Meta Platforms faced market pressure over the rising cost of its artificial intelligence ambitions.
Shares in Alphabet surged more than six percent in after-hours trading after the company reported a profit of $62.6 billion on revenue nearing $110 billion, comfortably exceeding market expectations.
The performance reflects growing investor confidence in Alphabet’s strategy to integrate AI across its core businesses, including search, YouTube and digital advertising.
“Alphabet remains one of the top names in the AI Revolution given the vertically integrated approach across Search, YouTube, and its ad cohort which continues to accelerate,” said Dan Ives of Wedbush Securities.
Alphabet’s shares
The strong results come as major technology firms ramp up spending on cloud computing and AI, seeking leadership in a sector widely expected to reshape industries.
Over the past six months, Alphabet’s shares have climbed 26 percent, while competitors including Meta and Microsoft have seen declines.
Meta, which also posted strong earnings with a quarterly profit of $26.8 billion on revenue of $56.3 billion, saw its shares fall more than six percent.
Investor concerns centred on rising expenses, which reached $33.4 billion as the company accelerates its push towards “superintelligence.”
The firm also increased its projected capital spending by $10 billion to a range of $125 billion to $145 billion, largely driven by investment in data centres and AI talent.
Meanwhile, Microsoft and Amazon also reported strong earnings supported by AI and cloud demand, underscoring the sector’s rapid expansion despite ongoing concerns over costs and returns.
