Google Shares Plunge as AI Spending Raises Alarm Bells

The Financial Exchange Show · Oct 29, 2026 · 38m · transcript

Google shares are plunging after disappointing earnings reveal weakening cash flow and slowing growth in its core search advertising business. Meanwhile, Microsoft's booming cloud business suggests its massive AI investments may be starting to pay off. But can either company sustain its spending as questions grow about the profitability of AI?

Chuck Zodda and Paul Lane break down Google's disappointing results, Microsoft's accelerating cloud growth, and why investors are becoming increasingly selective about AI stocks. They also examine the Federal Reserve's decision to hold interest rates…