Youtubeยท2025-10-31 17:23Core Insights - The company is experiencing uncertainty around AI investments, similar to past sentiments regarding the metaverse, with a notable increase in spending being communicated [1][2] - Investors are questioning the return on significant capital expenditures (capex) aimed at achieving artificial general intelligence (AGI) and how this will impact advertising revenue [2][6] - Comparatively, Alphabet is expected to deliver faster earnings growth than the company, with projections of 25-26% growth versus only 3% for the company next year [5][6] Financial Metrics - The company is forecasted to grow earnings per share by only 3% next year, while Alphabet is projected to grow at a significantly higher rate [5] - The current trading multiples for Alphabet and the company are similar, but Alphabet is expected to achieve approximately 50% faster earnings growth over the next two years [6] Spending and Investment Strategy - There is a focus on whether the company can reduce its spending, as many of its capital expenditure plans may already be committed [7][8] - The CFO indicated that next year's budget is not fully finalized, suggesting potential for adjustments based on investor feedback [8] - A recent corporate bond issuance has seen significant oversubscription, indicating that there is market support for the company's capital expenditures [9][10]