Google parent Alphabet (GOOG, GOOGL) reported its fourth quarter earnings after the bell on Tuesday, beating on earnings per share and coming in roughly even on revenue. But the company fell short on its important cloud segment revenue.

Alphabet reports fourth-quarter earnings after Tuesday's closing bell. Investors will be focused on cloud momentum and AI traction, with shares of the Google and YouTube parent company holding fast near the record levels achieved last week.

In a conference call with analysts, Pichai caused a bit of a stir when he said that the company plans to increase its capital expenditure to $75 billion in fiscal 2025 as part of an effort to build out its AI infrastructure. That’s much more than the $58.84 billion that analysts were expecting the company to spend in the coming year.

Google's cloud business posted a 30% rise in revenue to $11.96 billion in the fourth quarter, slowing down from the 35% increase in the September quarter. Analysts were expecting a rise of 32.3% to $12.16 billion, according to data compiled by LSEG.

Alphabet's (GOOGL, GOOG) stock dropped by nearly 7% in after-hours trading after reporting fourth quarter earnings results, posting revenue of $96.47 billion (short of estimates for $96.62 billion) and adjusted earnings per share of $2.

Google parent Alphabet (GOOGL) reported fourth-quarter earnings that topped analysts' estimates, but its cloud revenue came in short, sending shares lower in extended trading Tuesday. The tech giant saw revenue grow 12% year-over-year to $96.

Alphabet's capital expenditure is estimated to have been $50 billion for last year, according to LSEG, with more planned for 2025 to support its cloud expansion and AI-driven search features, including summaries, which are vital to defending its market share and attracting more ad revenue.

Alphabet reported $81.6B in Q4 revenue, below analysts’ $82.8B estimate. Google’s parent company announced $75B in 2025 capex, far above the expected $57.9B. Analysts warn

Alphabet said Tuesday it will spend $75 billion on its AI buildout this year, 29% more than Wall Street expected, while posting cloud revenue that missed analysts’ target. The tech giant’s shares were down more than 7% in extended trading.