Alphabet's heavy investment in cloud infrastructure has resulted in a larger-than-anticipated cash burn for the third quarter. The company's shares dropped between 7% and 9% in extended trading, and the IVV ETF fell to $773.35 following revenue and earnings misses. Furthermore, the 'Other Bets' segment, including Waymo, recorded operating losses exceeding $2 billion. Waymo generated only $372 million in revenue, accounting for a mere 0.3% of Alphabet's total quarterly revenue.
The group's market capitalization plunged as concerns over AI investment scales and negative free cash flow overshadowed robust growth in the Google Cloud division.
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