Why Alphabet's stock is falling despite booming cloud growth

Core Viewpoint - Alphabet's stock is experiencing a decline despite significant growth in cloud revenue, primarily due to concerns over its projected capital expenditures for 2026, which are expected to reach $185 billion, nearly double the $91 billion spent in 2025 [1][1][1] Group 1: Financial Performance - Alphabet reported a remarkable 48% growth in cloud revenue, indicating strong performance in this segment [1][1] - The company's capital expenditure forecast for 2026 is set to nearly double compared to the previous year, raising investor concerns [1][1] Group 2: Market Reaction - Following the announcement of the capital expenditure forecast, Alphabet's stock declined by 3% on Thursday morning, reflecting investor apprehension [1][1] - Analysts have noted that Alphabet is a unique case where AI spending could lead to significant financial benefits, yet the market remains cautious [1][1]