Alphabet Earnings Miss Sends U.S. Futures Lower as AI Spending Faces Scrutiny

U.S. stock futures fell after Alphabet’s quarterly results missed Wall Street expectations, reviving questions about whether its heavy artificial intelligence investment can deliver enough returns. In early trading, Nasdaq 100 futures were down 0.9% and S&P 500 futures 0.2% lower, while Alphabet shares fell about 10% after hours. The market reaction followed Alphabet’s report for the quarter ended Sept. 30, in which revenue rose 25% year over year to $127.6 billion but came in just below analysts’ average estimate of $127.97 billion. Earnings were $2.12 a share, below estimates of about $3.01; an $8.7 billion loss on equity investments reduced earnings by 55 cents per share, according to the quarterly results and market reporting.