Alphabet earnings miss drags Asian shares and Wall Street futures lower
Asian stock markets fell on Thursday after Alphabet reported weak earnings that triggered concerns about its heavy spending on artificial intelligence.
Tech stocks fall sharply
Alphabet shares dropped more than 10% in after-hours trading following a revenue miss and accelerated cash burn related to AI projects. This decline wiped nearly $400 billion off the company's market value and pushed Nasdaq futures down by 1%. In contrast, Microsoft shares rose 3% because its cash flows exceeded analyst forecasts.
Asian markets react
The drop in Alphabet stock caused Asian shares to give up earlier gains as investors reassessed big technology spending. Samsung Electronics reported a record operating profit driven by demand for AI chips, yet its shares still slid more than 4%. The broader MSCI Asia-Pacific index outside Japan fell 0.7% while the Nikkei in Japan remained slightly positive.
Fed policy decision
The Federal Reserve held interest rates steady overnight as widely expected, though two committee members voted for a rate hike. Chair Kevin Warsh expressed confidence about the inflation outlook during his press conference which sparked a rally in Treasuries.
All 2 outlets report consistently
No differences in figures, names or dates across these reports.
- Business Recorder
- Dawn
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2 independent outlets. Headlines as published. Links open the original report.