Alphabet falls as margin fears, YouTube slowdown eclipse AI boost


FILE PHOTO: Figurines with computers and smartphones are seen in front of Alphabet logo in this illustration taken, February 19, 2024. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo

(Reuters) -Alphabet fell more than 3% on Wednesday on fears that its rising investments in AI infrastructure would squeeze margins and YouTube was facing tough competition for ad dollars.

The Google parent's capital expenditure rose more than expected in the second quarter to $13.2 billion as it invests heavily in infrastructure needed to support generative AI services, as well as compete with Microsoft.

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