Google Parent Alphabet’s Stock Tumbles Amid Worries Whether AI Spending Will Pay Off | Global News Avenue

Google Parents’ Letter Stocks (Googl) fell on Wednesday as several analysts lowered their stock price targets, citing weaker cloud growth for the tech giant and plans to increase spending on AI.

Alphabet says it plans to invest in $75 billion exist Capital expenditure This year, most of it is expected to be used to expand its AI Infrastructure that meets needs.

UBS analysts say the figure is about $15 billion than Wall Street’s expected $15 billion, suggesting new Google products will need to emerge to “guaranteed higher levels of investment.” The bank cut its target from $211 to $191, saying “investors need to wait” for Alphabet’s AI investment to earn returns.

JPMorgan analysts have lowered their price target from $232 to $220 and have expressed similar concerns. In contrast, meta(Yuan), said it plans to invest 60 billion to 65 billion US dollars Analysts say a “more obvious” avenue is offered through the advertising business this year.

The goal of lower prices is also after Chinese artificial intelligence startups Deepseek The claim to develop AI models comparable to those of U.S. companies at a small percentage of the cost has raised concerns about U.S. companies’ AI spending.

The glimmer of hope for Google Cloud may grow with higher capabilities

But several analysts, including JPMorgan and Wedbush, also suggested that the investment could help grow as letters improve their cloud capabilities to meet demand.

Bank of America analysts added that Wall Street may “underestimate the Al overview benefits of monetizing searches in 2025.” The bank maintained a “buy” rating and a target of $225.

Alphabet’s shares fell nearly 8% to $192.23 in intraday trading on Wednesday. Despite Wednesday’s losses, they have lost more than 30% over the past 12 months.