Google parent Alphabet ad revenue disappoints, CapEx up; shares sink 6%

Alphabet disappointed Wall Street on Tuesday as holiday-season advertising sales came in below expectations and the company said its spending on items such as servers to power artificial intelligence would jump this year.

Alphabet shares fell 6% in after-hours trade.

Against a backdrop of mixed U.S. economic signals, Alphabet’s powerhouse units Google and YouTube have faced competition for ad budgets from other online platforms, including Facebook, Instagram, TikTok and Amazon.com.