Alphabet shares fall after earnings report on higher AI spending and negative cash flow

In the report, Alphabet raised its investment forecast to $205 billion (nearly two trillion kronor). That was more than expected.

At the same time, revenue rose 24 percent, which was more than expected. Expectations were also beaten on the bottom line, with profits increasing 30 percent.

But free cash flow turned negative - to minus $5.85 billion. This has raised market concerns about how US tech giants will finance all the big AI investments.

Other major AI stocks such as Meta Platforms and Amazon are following suit in futures trading, down just over 1 percent.