Google’s AI bets pay off while Meta faces investor skepticism
Alphabet Inc., the parent company of Google, is starting to show measurable gains from its AI investments, while Meta Platforms Inc. is still working to convince investors that its heavy spending will pay off.Alphabet Inc. shares rose 6.6% after $20B cloud revenue beat estimates, signalling early returns from AI investments and strong enterprise demand.Meta Platforms Inc. stock fell over 6% as capex guidance increased to $145B, with analysts citing weak engagement in its standalone AI app.Amazon.com Inc. and Microsoft Corp. reported strong cloud growth, reinforcing AI demand, though Copilot adoption reached only 20M paid users. The updates came within minutes of each other on Wednesday, as Alphabet Inc., Meta Platforms Inc., Amazon.com Inc., and Microsoft Corp. all reported results. Together, the four companies remain at the center of a global AI infrastructure buildout expected to run into the trillions of dollars. Both Alphabet and Meta added another $10 billion to their capital spending plans, pushing the groups combined outlay to as much as $725 billion for 2026. The scale of that investment continues to draw scrutiny, with investors focused on whether it is translating into clear financial returns. Alphabet pointed to strong performance in its cloud division as evidence of traction. The unit