“The cloud division’s importance is critical in driving AI services and applications,” said Jay Woods, chief global strategist for Freedom Capital Markets. “Investors were hoping to see more bang for their buck and were disappointed.”

The Chinese government's move to open an antitrust probe into Google is the latest development in a long and tangled relationship that goes back to the early 2000s. The investigation was one of a flurry of Chinese retaliatory measures announced Tuesday in response to a 10% tariff imposed by U.