AI is forcing Big Tech to do something it’s never done: Spend more than it earns, and Wall Street hates it

Alphabet reported a record $112 billion profit, driven largely by unrealized gains from SpaceX and Anthropic, but investors punished the stock as the company became cash flow negative for the first time. Google Cloud's 82% growth couldn't offset concerns over rising capital expenditures, triggering a 7% stock drop and spillover declines in Microsoft, Amazon, and Tesla.