(BFM Stock Exchange) – The mother house of Google has delivered income below expectations in the fourth quarter. The company also announced investments of $ 75 billion in 2025, in particular to strengthen in artificial intelligence.

Alphabet undergoes a heavy correction to Wall Street this Wednesday, February 8. The action of the mother house of Google and YouTube drops 7.7% at the start of the session at Wall Street.

The group published, in the quarter from October to the end of December, revenues of $ 96.47 billion, up 12% while its profit per share established at 2.15 dollars against 1.64 Dollar over the same period of 2023.

If the profit per share is above the Visible Alpha consensus ($ 2.12), the Mountain View company has missed the mark on income, analysts awaiting an amount of 96.6 billion euros.

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A disappointing cloud

Like Microsoft last week, the growth of the dematerialized computer division (Cloud) stuck. These activities are particularly monitored among tech giants, because they are the ones that benefit the most heavy investments passed by these companies in artificial intelligence (AI), in particular generative AI.

In the fourth quarter, Google Cloud gave growth of 30% over one year to reach $ 12 billion. Too little in the eyes of the market which awaited a figure of 32.6%, according to Dan Ives, analyst at Wedbush.

The other subject of tension on the part of investors comes from the famous “CAPEX”, that is to say the planned investments. The market now scrutinizes these figures which tended to fly due to the expenses provided for in the AI. The operators met their attention on these costs, especially after the shock wave caused by the Chinese start-up Deepseek.

This young shoot has developed models of large -scale AI language (LLM) whose performance competes with Chatgpt (OpenAi) or Llama (META), but with a priori lower costs. The prowess of Deepseek have “questioned the rationality of investments of several billion dollars announced recently,” notes Cesar Gimeno, man manager at Mapfre AM.

However, alphabet has announced total “CAPEX” of $ 75 billion for 2025, an envelope far above analysts’ expectations, housed at $ 59 billion.

“It is a significant increase and it shows that Alphabet puts the package on his AI projects,” said Kathleen Brooks, of the XTB platform.

Alphabet did not indicate which part of these amounts was devolved to AI. Google’s financial director Anat Ashkenazi, however, explained to analysts that the company would still invest in AI and Cloud, areas in which the company perceives “potential for continuous growth”. With this in mind, the majority of CAPEX of $ 75 billion will be devoted to technological infrastructure linked to these areas, such as servers and data centers.

Quoted by Bloomberg, Dan Morgan, senior portfolio manager at Synovus Trust, believes that the technology giant is now subject to increasing pressure to show how its investments in AI translate into real commercial gains.

On a more positive note, alphabet trends in advertising remained solid. Google search engine income increased by 12.5% ​​while YouTube’s advertising revenues increased by 13.8%, against expectations, respectively 11% and 11.2%, according to Dan Ives.