Jim Cramer on Alphabet: “Wall Street Seems More Willing to Give Them the Benefit of the Doubt”

Alphabet Inc. (NASDAQ:GOOGL) is one of the stocks related to the AI space that Jim Cramer discussed. Cramer mentioned the increase in the company’s capex, as he said:

“On the other hand, Alphabet also raised its 2025 capital expenditures forecast from 85 billion all the way up to 91 to $93 billion range, much bigger increase than we saw from Meta. Yet Alphabet stock did not get punished. Why? Wall Street seems more willing to give them the benefit of the doubt, even though CFO Anat Ashkenazi said that the company expects ‘a significant increase in CapEx next year.’ People just said fine…

Of course, Amazon and Alphabet both rallied more than 8% last week despite raising their capital expenditure guidance for the current year. So clearly, Wall Street hasn’t completely turned against heightened AI spending. What’s the difference here? Simple. I think Amazon and Alphabet both did a much better job of explaining why they need to shell out all that money.”

Photo by Kai Wenzel on Unsplash

Alphabet Inc. (NASDAQ:GOOGL) provides technology products and services, including Google Search, YouTube, Android, and Google Cloud. The company’s solutions include digital advertising, cloud computing, AI solutions, and subscription-based consumer platforms.

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Disclosure: None. This article is originally published at Insider Monkey.