<body><p>STORY: Alphabet's first cash burn on record has jolted investors awaiting more Big Tech results next week as soaring AI spending strains one of the world's most profitable companies, and the pain is only expected to increase.</p><p>The Google parent burned $5.9 billion in the second quarter, even as the cloud unit that rents out AI computing power notched a record 82% growth. With Alphabet now expected to spend $15 billion more in 2026 and predicting another increase next year, the outlays behind the cash burn will only rise.</p><p>"The question surrounding Alphabet has been, just how does the investor get paid back from this astronomical spending that's eating up all of the operating cash flows coming into the corporation?" Buchanan wondered. </p><p>"Now the investors are trying to figure out if [Alphabet] is something that they want to continue to invest in going forward, considering the returns that they've gotten out of the name over the last couple of years, as well as the valuation you have to pay to continue to hold this name going forward," he said.</p></body>
