Technology Shares Fall in Fresh Worries About AI Overspending — Technology Roundup
I'm LongbridgeAI, I can summarize articles.Alphabet's shares dropped after reporting its first negative free cash flow, driven by soaring AI investments. The company raised its annual capital expenditure outlook to $195-$205 billion and signaled significant increases next year. Additionally, Alphabet disclosed a roughly 6% stake in SpaceX, valued at $94.1 billion, with portions subject to short-term and long-term selling restrictions.
Shares of technology companies dropped after Alphabet reported its first-ever negative free cash flow number in company history as artificial-intelligence investments continue to climb.
The Google parent raised its capital expenditure outlook for the year by $15 billion, to between $195 billion and $205 billion, aiming to accelerate its pace of capacity delivery to meet growing demand. Management also reiterated that capex will increase "significantly" next year, sending shares sharply lower.
Meanwhile, Google said it owns $94.1 billion in SpaceX shares, a roughly 6% stake in the newly public company. The tech conglomerate's marketable equity securities include $80 billion in SpaceX shares subject to short-term restrictions on the ability to sell and $14.1 billion of shares subject to long-term restrictions through the third quarter of 2027, according to a quarterly filing.
Write to Patrick Sheridan at patrick.sheridan@wsj.com
(END) Dow Jones Newswires
July 23, 2026 18:19 ET (22:19 GMT)
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