Big Tech earnings lift cloud revenue as AI spending climbs
Alphabet reported third-quarter revenue of $127.6 billion, up 25 percent year on year, with Google Cloud revenue of $30.7 billion, up 103 percent. Microsoft's Azure cloud business grew 48 percent in its fiscal first quarter ended September, and it lowered its full-year capital expenditure forecast to $170 billion from $175 billion. Alphabet posted negative free cash flow of $9.07 billion as spending rose, and its shares fell about 8 to 10 percent after the results, according to reports. Microsoft shares rose more than 3 percent in after-hours trading. The results came as investors weighed how much companies spend on AI against the income it generates.