Alphabet stock falls despite strong earnings, investing amid the tech sell-off

Company Overview - Alphabet announced plans to spend $185 billion on AI infrastructure in 2026, which is more than the total spending of the last three years combined [2][6] - The company's capital expenditure (capex) guidance for this year is nearly double that of last year, with a midpoint estimate of $180 billion, significantly higher than previous forecasts [8][9] Financial Performance - Alphabet's cloud revenue has accelerated, driven by strong demand for AI investments, with core search business growth also showing improvement [9][10] - The Gemini suite of AI models has contributed to record engagement in search, with 750 million monthly active users, up from 650 million in the previous quarter [11][13] Market Reaction - Following the announcement of increased spending, Alphabet's shares fell, reflecting investor concerns over the high expenditure despite the company's strong performance [1][6] - The overall tech market is experiencing a selloff, with Alphabet's stock under pressure amidst broader market trends [21][30] Industry Context - The cryptocurrency market has seen a significant decline, with $1.7 trillion wiped from crypto assets, and Bitcoin falling below $70,000, down 44% from its record high [2][3] - Silver prices have also plunged by 17% after a period of gains, indicating volatility in commodity markets [4][5] Future Outlook - Analysts suggest that despite the current selloff, Alphabet's fundamentals remain strong, and the increased investment in AI could present long-term opportunities [9][24] - The company is expected to continue its growth trajectory in both cloud and search sectors, with AI playing a crucial role in future developments [10][24]