CNBC4/30/2026Business
Alphabet Surges 6% While Meta Plunges 9% as Investors Weigh Big Tech AI Spending Plans
Market diverges on AI capex bets: Google Cloud boom drives Alphabet higher, while Meta faces downgrade on uncertain returns
Quick Look
- Alphabet shares rose over 6% after beating Q1 estimates with 63% Google Cloud growth, while Meta dropped 9% despite beating earnings, as investors questioned Meta's $125-145B capex plan without a cloud business to monetize AI.
- Both tech giants increased AI spending, with Alphabet raising full-year capex to $180-190B and Meta to $125-145B, as analysts warn the AI spending cycle shows no signs of cooling.
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Alphabet shares rose over 6% after beating Q1 estimates with 63% Google Cloud growth, while Meta dropped 9% despite beating earnings, as investors questioned Meta's $125-145B capex plan without a cloud business to monetize AI. Both tech giants increased AI spending, with Alphabet raising full-year capex to $180-190B and Meta to $125-145B, as analysts warn the AI spending cycle shows no signs of cooling.
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This article was originally published by CNBC.
