Core Insights - Alphabet's fourth-quarter 2025 earnings per share (EPS) of $2.82 exceeded the Zacks Consensus Estimate by 9.73% and represented a 31.2% increase year over year [1] Revenue Performance - Total revenues reached $113.8 billion, marking an 18% year-over-year increase (17% at constant currency) [2] - Net revenues, excluding traffic acquisition costs (TAC), were $97.23 billion, surpassing the consensus estimate by 2.58% and increasing 19.1% year over year [2] - TAC amounted to $16.59 billion, growing 11.8% year over year [2] Segment Analysis - Google Services revenues rose 14% year over year to $95.86 billion, accounting for 84.2% of total revenues and beating the Zacks Consensus Estimate by 1.31% [3] - Google Cloud revenues surged 47.8% year over year to $17.66 billion, representing 15.5% of total revenues for the quarter and exceeding the consensus estimate by 8.70% [3] - Search and other revenues increased 16.7% year over year to $63.07 billion, surpassing the consensus estimate by 2.94% [4] - YouTube's advertising revenues improved 8.7% year over year to $11.38 billion, although it missed the consensus mark by 3.70% [5] - Google advertising revenues increased 13.6% year over year to $82.28 billion, accounting for 72.3% of total revenues and beating the consensus mark by 1.62% [6] - Google subscriptions, platforms, and devices revenues were $13.57 billion, up 16.7% year over year, but missed the consensus mark by 0.49% [7] Cloud and AI Adoption - Google Cloud ended the quarter with a backlog of $240 billion, up 55% sequentially, with nearly 75% of customers utilizing AI products [8] - Revenues from products built on Alphabet's generative AI models grew over 400% year over year, indicating strong adoption [10] Operating Performance - Fourth-quarter costs and operating expenses were $77.89 billion, up 18.9% year over year, with an operating margin of 31.6%, contracting 50 basis points year over year [12] - Google Services' operating margin expanded 280 basis points year over year to 41.9% [12] Financial Position - As of December 31, 2025, cash, cash equivalents, and marketable securities totaled $1.26 billion, up from $98.5 billion as of September 30, 2025 [14] - Long-term debt increased to $46.54 billion as of December 31, 2025, compared to $21.61 billion as of September 30, 2025 [14] - Alphabet generated $52.4 billion in cash from operations in the fourth quarter, with capital expenditures of $27.85 billion, resulting in a free cash flow of $24.55 billion [15] Capital Expenditure Guidance - For 2026, Alphabet expects capital expenditures to range between $175 billion and $185 billion, indicating a significant increase [16]

Core Viewpoint - Microsoft's stock has faced a significant decline of 23.5% over the past six months, influenced by Alphabet's strong cloud growth, leading to a downgrade by an analyst from Stifel [1]. Group 1: Stock Performance - Microsoft's stock price has dropped 23.5% over the last six months [1]. Group 2: Analyst Insights - Following Alphabet's earnings report, Stifel analyst Brad Reback downgraded Microsoft's stock from buy to hold, citing a lack of near-term catalysts for growth [1].

And it's time now for our 360 round. Our panel will be joining us to discuss Alphabet. The company slipping this morning despite an earnings beat.Investors keying in on this massive jump in AI spending. The company says it plans to spend more than double its capback spending to as much as $185 billion this year. That's largely due to build out this AI data center capacity.It's an aggressive investment. It's overshadowing some strong fundamentals, including record annual sales that were above $400 billion fo ...

AI has a PR problem. As companies bet big on AI’s development—from Google saying it will double its capital expenditure to Meta’s bet on AI acceleration in 2026—Americans have soured on the technology. While most say they’ve used AI, more have grown wary: 50% say they’re more concerned than excited about the technology, according to recent Pew research. That’s up from 37% in 2021. And just 10% say they are more excited than wary about the technology. Now, some tech companies are leveraging the art of stor ...

Alphabet (GOOG) (GOOGL) stock is sliding this morning after a slight YouTube miss and aggressive capex guidance overshadowed the company’s overall better-than-expected financials for its fiscal Q4. The post-earnings dip made GOOGL slip below its 50-day moving average (MA) today, signaling that downward momentum may sustain in the near term. More News from Barchart Despite the recent decline, however, Google shares remain up more than 100% versus their 52-week low. www.barchart.com Why Capex Guidance ...

Group 1 - UBS has set a new price target for Alphabet Inc. at $348, representing a 4.49% increase from the current stock price of $333.04 [1] - Alphabet is experiencing a surge in stock price due to accelerated growth in its advertising and cloud sectors, despite a current decrease of approximately 1.96% [2] - The company's market capitalization is approximately $4.02 trillion, indicating its significant size and influence in the technology sector [2] Group 2 - The stock has dropped by $6.67 today, with a trading range from a low of $328.53 to a high of $343.31 [3] - Over the past year, GOOGL has reached a high of $349 and a low of $140.53, showcasing its volatility [3] - Today's trading volume for GOOGL is 63,047,130 shares on the NASDAQ exchange, reflecting active investor interest [4] Group 3 - The substantial increase in capital expenditures forecast has attracted attention from investors and analysts, highlighting planned investments [3] - The company's focus on artificial intelligence and strategic investments are key factors in its current market performance [4]

Stock Market Today: Dow Falls On Surprise Jobless Claims; Alphabet Sells Off | Investor's Business DailyBREAKING: [Futures Fall, Bitcoin Dives; Google Tumbles]---Futures for the Dow Jones Industrial Average and other major stock indexes traded lower Thursday, as Wall Street reacted to a surprise jump in weekly jobless claims numbers. An early loser on the stock market today was Google-parent Alphabet (GOOGL), which sold off on earnings news. On Thursday, Dow Jones futures dropped 0.3%, as the S&P 500 future ...

Market Overview - Stocks experienced a decline on Thursday, particularly in the software sector, with Big Tech companies like Alphabet and Amazon down 4.3% and 4.8% respectively, leading to a 1.4% drop in the Nasdaq and a 1% decrease in the S&P 500 [1][1][1] - The volatility in the market was described as a "clearing event" by Jim Cramer, indicating potential for continued heavy selling [1][1] Company Insights - Alphabet reported stronger-than-expected fourth-quarter earnings, showing significant growth in its cloud and Search units, but its stock fell nearly 5% due to concerns over a larger-than-expected 2026 capex guidance and profit-taking after a 65% gain in 2025 [1][1][1] - Eli Lilly's shares dropped nearly 7% following the announcement of a generic version of Novo Nordisk's Wegovy weight-loss pill by Hims & Hers, priced at $49 a month, which is $100 cheaper than Wegovy [1][1] - Despite the drop, Eli Lilly is expected to launch its own weight-loss pill, orforglipron, in the second quarter in the U.S. and internationally in 2027, which may present a buying opportunity [1][1] Additional Stocks Mentioned - Other stocks discussed included Arm Holdings, Qualcomm, and Ralph Lauren, indicating a focus on diverse sectors within the market [1]

Market Overview - The S&P 500 dropped to an over two-week low, while the Nasdaq sank to its lowest level in more than two months, driven by renewed pressure on the AI theme following Alphabet's spending plans and Qualcomm's downbeat forecast [1][3] - The Dow Jones Industrial Average fell nearly 400 points, or 0.8%, to 49,113, with the S&P 500 losing 0.9% and the Nasdaq dropping 230 points, or 1% [1][3] Company-Specific Developments - Alphabet's shares fell over 3% after announcing it would double its capital expenditure this year, indicating an aggressive push in the AI sector [3][8] - Qualcomm's stock slid 8.2% after forecasting second-quarter revenue and profit below estimates, contributing to the overall market decline [3] - Microsoft and Tesla also experienced declines of 3.4% and 3.7%, respectively, as the pressure spread across tech mega-caps [3] Investment Trends - Big Tech is expected to invest more than $500 billion into infrastructure this year, raising concerns about high valuations and the timing of returns [4] - The CBOE volatility index rose 3.8 points to 20.49, reaching an over two-month high, reflecting increased market anxiety [4] Sector Performance - The S&P 500 software and services index fell 3.2%, marking a seventh consecutive session in the red and erasing approximately $830 billion in market value since January 28 [10] - Software and data services stocks, such as ServiceNow and Salesforce, saw declines of 5% and 4%, respectively, as investors reacted to disappointing earnings [6] Market Sentiment - There is a growing sentiment that rapidly improving AI tools may negatively impact demand for traditional software, leading to reduced growth expectations across the sector [7] - Amid risk-off sentiment, silver and gold resumed a decline, with silver plunging almost 13% [10][11] - The market is witnessing a rotation into cheaper, overlooked sectors, with consumer staples being the only sector trading in the green [13]

Alphabet, Inc's (NASDAQ:GOOGL) recent earnings results may have beaten estimates, but for ETF investors, the larger message wasn't simply revenue growth – it was the reminder that hyperscaler AI investment continues to direct funds to the semiconductor sector while simultaneously heightening concerns about mega-cap concentration within broad equity indices.The Google parent company posted fourth-quarter revenue of $113.83 billion, beating consensus estimates, with robust growth in Search, Cloud, and subscri ...