The sharp drop is the latest sign of anxiety creeping through Wall Street over how long it will take AI companies to see returns on massive investments.
  • radiofreebc@lemmy.worldEnglish
    2·
    6 days ago

    Pretty soon the stock market is just going to be GameStop, and the people who believed that stock was showcasing the fundamental cracks in the market. Wall Street has never cared as much about investors, as when it comes to warning people what a risky stock GME is…but that’s just because they’re Marianas Trench level underwater shorting that stock.

    GME will be the last stock standing when it all comes undone.

    Ad hominem attacks and FUD incoming in 3…2…1…

  • schipelblorp@sh.itjust.worksEnglish
    171·
    8 days ago

    But all that AI is coming at a massive cost to Alphabet, which disclosed that it has committed to more than $1 trillion worth of multiyear spending agreements to fund the infrastructure, energy and leases required to run AI systems.

    This is the problem right here: lack of faith. Google should announce $3 trillion in new AI commitments. Stock market are just a bunch of pussies that can’t clap hard enough for Tinker Bell to live.

    • Guy Dudeman@lemmy.worldEnglish
      68·
      8 days ago

      Did you see the part where their revenue was down because fewer ads were being served because people are using their stupid AI summaries instead of searches? God, these people are short-sighted.

      • criss_cross@lemmy.worldEnglish
        8·
        8 days ago

        They’re betting that they can slowly start incorporating ads into those AI summaries.

        EDIT: However that’s a losing bet as anyone can get a local model that can do a search like that without the enshittified model.

        • Meatwagon@piefed.blahaj.zoneEnglish
          6·
          8 days ago

          The common person is not tech literate enough for that.

          On my end, I would love to do that but 1 ram is 10 billion dollars and I was a fool who didn’t upgrade to 32g when I could.

          • Malica@lemmy.zipEnglish
            2·
            8 days ago

            It’ll come back down in a few years. Chinese ram is pretty good too I hear

      • TeaWithDani@lemmy.worldEnglish
        3·
        7 days ago

        There’s also been a multiyear trend of dropping ad sales overall, especially with higher quality companies. Meaning they need far more impressions of the same buyers to make ends meet.

        They are all experiencing a recession, hidden by the Ai bubble, so the only people buying ads are lower quality scam companies, gambling and other bullshit. These are less sustainable clients that can vanish at any moment.

        Ads targetting people who cant afford to buy things are also not super viable.

  • plenipotentprotogod@lemmy.worldEnglish
    1641·
    8 days ago

    I know the article is about google, but the bit about caterpillar is insane.

    The bleeding even spread beyond the tech sector, as shares of the construction equipment giant Caterpillar — a key supplier of the machines required to build data centers — plunged 9.2% on Thursday. Caterpillar’s recent earnings report revealed that its revenue beat Wall Street expectations but by less than many traders had hoped.

    So, their earnings beat expectations, but they didn’t beat the expectations for how much they’d beat expectations, so the share price went down.

    What is even going on at this point?

    • psx_crab@lemmy.zipEnglish
      671·
      8 days ago

      Welcome to stock market, where the stock price is based on expectation instead of how well the company actually doing. There could be profit but if the profit is slightly less than last quarter, the day traders all gonna throw their baby tantrum.

      • phutatorius@lemmy.zipEnglish
        1·
        5 days ago

        And that’s fine. It incentivizes some weird behavior, but there can be rational strategies that work in that environment, not only the deranged herd behavior that we see during speculative bubbles such as this one. And there are even worse methods of allocating money to investment opportunities (for example, politicians picking winners).

      • MimicJar@lemmy.worldEnglish
        17·
        8 days ago

        Not to mention as much as this stock fall is “a big deal” it’s just fallen to where it was back in March. And of course that March fall was also a singular moment, because before that were just back to October 2025.

        So sure, they’ve lost a year of stock growth, and in a world of “line must go up” falling back a year of stock growth isn’t nothing… But it’s also far from the end of the world.

        Which is all to say, Google’s fine in the long run. Day traders don’t look at the long run, so for the moment “panic”, but ultimately it’ll pass.

    • Ms. ArmoredThirteen@lemmy.zipEnglish
      132·
      8 days ago

      Company I worked at a couple years back not only beat their projected earnings, but made record profits highest quarter ever. Stock prices dropped by a third

    • banana_pie@piefed.zipEnglish
      10·
      8 days ago

      They are trading at big growth multiples. So if the rate of growth slows then it gets repriced. Their assumption was double digit growth rate, which is one helluva bet.

    • AdolfSchmitler@lemmy.worldEnglish
      91·
      8 days ago

      This exact thing has been driving me crazy for like a decade now. Say a company makes $1 billion in profit one year, and the next year isn’t as good but they make $800 million. Still a very profitable company, but because it was less then the year before it’s considered horrible and the company is basically going out of business.

    • kippininreal@lemmy.zipEnglish
      6·
      8 days ago

      They are making less off of AI overviews than traditional ads, but their AI buildout costs are increasing, which is ass backwards. I don’t know if it was in their report but they also supposedly don’t have a strategy for making their customers pay for AI use.

      • theneverfox@pawb.socialEnglish
        14·
        8 days ago

        They are making less off of AI overviews than traditional ads, but their AI buildout costs are increasing

        Not but, it’s and

        Their ad revenue plummeted, because the AI summary costs money each search and also leads to fewer clicks (because people often take the AI answer), meaning Google ads, the core of their business, are not being seen on web sites

        Also, they continue to invest crazy amounts in AI data centers (despite being significantly behind in LLM quality)

        But that’s really just a piece of the puzzle, the simple answer is they are not only going all in on AI, they’re also destroying the one massive profit center that keeps all their other projects afloat

        You love to see it

    • merc@sh.itjust.worksEnglish
      4·
      7 days ago

      This also points out how the AI bubble is affecting the economy far beyond the tech sector.

      Construction equipment used to be used for other things, not just building datacenters. But, since the start of the AI bubble, almost everything else has slowed down because they’re dedicating so much construction equipment and workers towards building datacenters.

      https://futurism.com/future-society/data-center-spending-ai-bubble-construction

      In just 1 year, construction work on DCs has gone up by 64.5%. And, that’s from 2025 to 2026. It’s not like it was at a standstill in 2025. Meanwhile, residential construction is down significantly. And, there has been a 25% cut in construction related to manufacturing.

    • TankovayaDiviziya@lemmy.worldEnglish
      51·
      8 days ago

      So, their earnings beat expectations, but they didn’t beat the expectations for how much they’d beat expectations, so the share price went down.

      That’s why I always say that big shot, institutional investors are a bunch of cunts. They always think in short term. That’s why I am in favour of half year earnings report so that there is less pressure for companies to think in three months time.

    • rayyy@piefed.socialEnglish
      41·
      8 days ago

      Buyers are extremely edgy because they know we are teetering on the edge of a potential collapse.

    • Malica@lemmy.zipEnglish
      31·
      8 days ago

      You should see NVIDIA stock after every earnings. They beat, by a lot. Stock goes down. Every fucking time. Stock market runs on vibes now.

  • Blackmist@feddit.ukEnglish
    58·
    8 days ago

    I for one look forward to the humorous Adam McKay movie explaining how we all lost all our pensions over this.

    • Impractical_Island@lemmy.worldEnglish
      55·
      8 days ago

      I asked my penis, she said start using the bitch. I said I beat you daily and she starts talking about ass and pussy and it’s like I might be the second coming but I ain’t no miracle worker, aight? Fucking get off my dick already, you fucking dick, amirite?

  • CAPSLOCKED@lemmy.worldEnglish
    39·
    8 days ago

    anyone notice their search engine enshittify with dates? an advance search let you search between points in time, like between 2010 and 2012 specifically. you can’t do that anymore. other search parameters are gone. along with renaming lake ontario it’s the equivalent of history book burning.

    • GreenKnight23@lemmy.worldEnglish
      6·
      8 days ago

      they did away with that around the same time they removed it from YouTube. probably because they knew people weren’t going to read/watch AI generated bullshit.

      jokes on them, I still found ways to search YouTube between dates.

  • CrimeIsLegalNow@ani.socialEnglish
    32·
    8 days ago

    Can’t believe stealing all the Reddit comments didn’t make Gemini the smartest bot on the Internet!

    Good thing they also sabotaged their ad revenue to do it!