Google's balance sheet reignites doubts about the return of artificial intelligence and weighs on Nasdaq futures
Alphabet shares fall 10% in extended trading after lower-than-expected sales, and investors are questioning the return on spending on artificial intelligence.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 3 MIN
Nasdaq futures contracts fell more than 1% on Thursday (29), according to InfoMoney, after the balance sheet of Alphabet, owner of Google, disappointed the market and opened a new discussion about the artificial intelligence sector.
The company's sales result was below expectations, and Alphabet's shares fell 10% in extended trading, according to the same source. The movement weighed on the index because the company is one of the main bets in the American technology market.
The problem goes beyond a weak number. According to InfoMoney, there are doubts about whether the investments of hundreds of billions of dollars that Alphabet has been making in AI will return in the same proportion. In a sector that relies on growth promises linked to AI, this question gains weight in share prices.
The market now turns its eyes to the next balance sheets. According to InfoMoney, Amazon releases results on Thursday, and Apple, the following week. On another front, MarketWatch reports that Fortinet fell after its earnings report, due to a strong slowdown in one of its business segments, and that cybersecurity stocks fell across the board.
In Brazil, the week was also one of strong turbulence, independent of the American scenario. According to Times Brasil, the Ibovespa fell 13.88% on Monday (26/10), to 176,608 points, after closing the previous Friday above 205 thousand points. The circuit breaker was activated for the first time since March 2020, and the dollar rose 8.25%, to R$5.40. The cause, according to the same vehicle, was the first change between electoral rounds since 1989, precisely when the market was betting on a change of government.
What changes for the investor
For those who follow the Nasdaq, Alphabet's balance sheet works as a thermometer for how much the market is willing to pay for companies that invest heavily in artificial intelligence. If doubt about the return on these expenses spreads to other names in the sector, the effect could go beyond a single action. It is worth following the results of Amazon and Apple in the coming days, because they should show whether the negative reading about the sector gains strength or loses ground. In Brazil, the electoral shock and the rise in the dollar add up to a source of volatility that does not depend on what happens on Wall Street.
Automatically translated from Portuguese.
