The divergence signals that investors, having rewarded aggressive AI spending often funded by debt, now want evidence that the resulting growth can finance future investments. (AFP pic)
BENGALURU: Wall Street rewarded Microsoft and Oracle on Wednesday for showing that they could fund their enormous AI ambitions without endlessly tapping investors.
Alphabet, by contrast, was punished for burning through cash, while Google Search's slower growth fanned fears that competition was hurting the business that bankrolls its AI expansion.
Microsoft shares jumped more than 3% in after-hours trading, while Alphabet plunged nearly 10%, as investors drew a sharper distinction between companies making money from AI and those struggling to contain its costs.
