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Google's spending spree rattles Wall Street
Alphabet, the parent company of Google, racked up $7.7 billion in capital expenditures for the first three months of 2018 on everything from real estate to undersea cables.
The company reported strong growth in sales and profit for the quarter on Monday, fueled by the strength of its advertising business and helped by a lower tax rate. But its staggering investments appear to be rattling Wall Street. Google's stock fell as much as 5% in early trading Tuesday.
"The big story from the results was the significant rise in expenses," Brian Wieser, an analyst with Pivotal Research, wrote in an investor note Monday night.
Alphabet spent $2.4 billion in March to buy Cheslea Market in Manhattan to expand its office space in New York City. The company also said it invested in data centers, production equipment and undersea cables.
Also at Bloomberg and Reuters.
(Score: 3, Informative) by SunTzuWarmaster on Thursday April 26 2018, @02:50PM
They got a big infusion of repurposed off-shore money and used it to make a pile of infrastructure investments on-shore.
Government: "You can bring this money back at a low tax bracket"
Google: "Cool, I bring it back. Done."
Google: "I've got all this liquid US-cash sitting around... Time to buy some US-stuff."
They bought land near their offices, undersea data cables, and land for data centers. WTF is the Street upset about? Worst case scenario they sell the land/cables.
Its not like *GOOGLE* isn't going to use *DATA CENTERS* *DATA CABLES* and *OFFICE SPACE*. That's, like, what their whole company is... Data centers, cables, and office space to program the centers/cables.