Google: raises CAPEX by $10 billion, now up to $85 billion. That's just one year. I can't get my head around that. What does it mean? Question. How much did Warren Buffett spend on acquiring BNSF?
Berkshire Hathaway paid $26.5 billion in cash and stock to acquire the remaining 77.4% of BNSF Railway it didn't already own, according to Wikipedia. The total deal value, including the previously held shares, was approximately $34 billion, according to several sources. This purchase was finalized in early 2010.
At market open: the Dow was down 300 points. Ouch, but one-third of that is due to IBM plunging after results yesterday.
Reminder: this is not an investment site. See disclaimer.
GOOG: up 4%; up $7.20 in pre-market trading.
From yesterday with an update:
July 24, 2025: Google spooks investors with $85 billion spend
rate AI. When earning came out, Google shares surged on how well Google
had done. Then, when it became known that Google would spend $85
billion on AI, investors were spooked and GOOG dropped. Many story
lines:
- more evidence that AI is here to stay and only going to grow bigger;
- a lot of tech companies. have had big runs; investors / traders use these opportunities to take profits;
- the amount of money needed to succeed in AI is its own moat
- drilling down on Google suggests it is doing surprisingly well in light of chatbots
- I can't stress enough how long this AI revolution will continue. Link here.
There will be a lot of folks -- in fact "all" folks who click on that
link will see how long that post is and will reply: TLDR.
Original Post
Revenue: $96.43 billion vs $94 billion.
EPS: $2.31 vs. $2.18 estimate.
Holy mackerel
Cloud revenue above estimates.
Cloud revenue: $13.62 billion vs $13.1 billion.
Now GOOG turns negative.
It will now depend on the conference call.
AI alive and well. It's not going to go away. More and more AI is coming back to the US.
