We're scooping up more shares of this recently banged-up megacap AI leader

Core Viewpoint - The company is increasing its investment in Alphabet by purchasing 50 shares at approximately $301 each, raising its total holdings to 200 shares, which will increase its portfolio weighting in Alphabet from 1.15% to 1.55% [1] Financial Performance - Alphabet's shares have declined about 9% since its earnings report, despite strong revenue and earnings-per-share results driven by growth in Search and Google Cloud [1] - The company reported free cash flow of approximately $70 billion for both 2024 and 2025, but this is projected to decrease to about $33 billion in 2026 [1] Capital Expenditure Plans - Alphabet plans to spend between $175 billion and $185 billion on capital expenditures in 2026, significantly higher than the Street's estimate of $115 billion and the $91 billion spent in the previous year [1] - This ambitious spending plan has raised concerns about the company's free cash flow, which is impacting investor sentiment across major tech stocks [1] Competitive Position - Google Cloud is experiencing significant growth, with a 55% year-over-year increase in its backlog, which reached $240 billion [1] - The company is perceived to have a clearer path to success compared to its peers, making it a preferred investment choice during the current tech market downturn [1]