- Alphabet reported a record $112 billion quarterly profit, but 69% came from unrealized gains on investments, not core business.
- Google Cloud soared 82%, yet the stock fell 7% due to the company's first-ever negative cash flow and warnings of significantly higher capex in 2027.
- The company has over $800 billion in purchase commitments, including $51 billion to backstop other firms' data centers.
- At least six firms cut Alphabet's price target, while only Barclays raised; the negative sentiment spread to Microsoft, Amazon, Nvidia, and Tesla.
- Analyst Gil Luria called the selloff an overreaction, noting Google Cloud's 'out of this world' growth and real AI spending of $120 billion annually.