Jul 24, 2024 - Economy
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Google parent Alphabet revealed yesterday that its capex will reach or exceed $24 billion for the rest of the year driven by investments to bulk up on AI.
- That trajectory would put its 2024 total at more than $49 billion — or 84% more than what it's averaged annually over the past five years, WSJ notes.
What they're saying: "The risk of underinvesting is dramatically greater than the risk of overinvesting for us here," CEO Sundar Pichai told Wall Street yesterday.
The big picture: Like Tesla, this narrative failed to impress investors, who sold off the stock after-hours and throughout the day today, sending it down 5% at close.
