Google parent Alphabet shares are down premarket after its earnings beat. Here's what's happening

Core Insights - Alphabet's shares declined by 2.6% in premarket trading despite beating Wall Street's expectations for earnings and revenue, indicating market volatility [1] - The company reported $113.83 billion in revenue for the fourth quarter, surpassing the estimated $111.43 billion [1] Revenue Breakdown - Google Cloud division generated $17.66 billion in revenue, exceeding the forecast of $16.18 billion [2] - YouTube Advertising revenue was $11.38 billion, slightly below the estimated $11.84 billion [2] Capital Expenditure Plans - Alphabet plans to significantly increase its capital expenditure for 2026 to between $175 billion and $185 billion, more than double the spending in 2025 [2] - A substantial portion of this capital expenditure will be allocated to enhancing AI compute capacity for Google DeepMind [2]