Google Stock Plunges Into Bear Market on AI Spending Fears
Source: barrons.com
- Alphabet's Google stock has entered a bear market, dropping more than 20% from its July peak amid investor worries.
- The decline stems from concerns over Google's massive spending on AI infrastructure, with capital expenditures hitting $12 billion last quarter.
- This selloff signals broader doubts about Big Tech's ability to justify huge AI investments with future profits.
Alphabet's Google stock has fallen into a bear market, down over 20% from its summer high, as investors question the company's heavy spending on artificial intelligence. The main players are Alphabet, Wall Street analysts, and tech investors worried about rising costs without clear returns. The core argument is that Google's aggressive AI push, including data centers and custom chips, is sparking fears of squeezed profits and slower growth. Readers should care because it highlights risks in the