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Alphabet's 10% AI Spending Selloff Labeled Buying Opportunity by Bullish Analysts

Alphabet Inc - Class C shares plunged nearly 10% in the March 20-27 week amid fears of ramped-up AI and cloud spending projected to reach $185 billion this year, part of big tech's potential $700 billion capex surge. Despite risks to free cash flow and near-term earnings, strong ad revenue ($82.2 billion in Q4, up YoY), $126.8 billion cash pile, and a $32 billion bond sale underpin optimism. With 61 of 68 analysts rating it a buy and no sells, the Motley Fool frames the dip as a long-term entry point amid short-term volatility.

Category

Alphabet

Sentiment

Bullish

Event

Institutional outlook

Reading time

1 min