Alphabet stock falls 7% after earnings miss, AI spend past $50 billion

Alphabet's third-quarter results set off a sharp after-hours selloff, with the stock down 7% as profit projections were missed and AI spending climbed past $50 billion. The combination of higher spending and weaker profit stoked investor worries that hyperscalers generally are not bringing in enough revenue to justify infrastructure investments financed by debt. A portfolio manager quoted by Bloomberg captured the mood, saying companies that can show they are producing cash for shareholders are in a better position than those that cannot, and that the fear gauge is on high alert about all this spending. Microsoft shares jumped after its cloud revenue beat estimates, which bolstered confidence in its AI play. That contrast suggests investors are rewarding discipline in spending, though the body does not explicitly draw a causal link beyond the portfolio manager's comment.