Core Viewpoint - Alphabet Inc's shares have declined by 6.1% to $312.64 following a capital expenditure forecast of $175 billion to $185 billion for the year, significantly higher than the expected $115 billion, aimed at investing in data centers to meet AI demand [1] Financial Performance - Alphabet reported strong fourth-quarter results with earnings of $2.82 per share on revenue of $97.23 billion, despite the stock selloff [2] - Analysts remain optimistic, with 17 price target hikes, the highest from Mizuho increasing the target to $410 from $400, and a 12-month consensus target price of $343.61, representing a 6.3% premium to current levels [2] Stock Performance - The stock had been near long-term support at its ascending 50-day moving average but broke below that level for the first time since June 23, marking its third consecutive drop and potentially its worst single-day performance since May 25, although shares are up 104% over the past nine months [3] Options Market Activity - Options traders are actively engaging, with over 285,000 calls traded, three times the average intraday volume, particularly with the weekly 2/6 330-strike call being the most popular [4] - The Schaeffer's Volatility Scorecard (SVS) for Alphabet's stock is at a high of 84, indicating that the stock has often exceeded options traders' volatility expectations over the past year [4]

Group 1 - Alphabet (GOOGL) shares fell by 4.9% in early trading on Thursday [1][2] - The company reported fourth-quarter earnings that exceeded expectations [1][2] - Alphabet raised its capital expenditure guidance for 2026 to between $175 billion and $185 billion, primarily focused on AI computing [1][2]

Financial Performance - Alphabet reported fourth-quarter revenue of $113.8 billion, an increase from $96.5 billion a year earlier [2] - Net income rose to $34.5 billion from $26.5 billion year-over-year [2] - Earnings per share increased to $2.82 from $2.15 [2] - For the full year 2025, net income climbed to $132.2 billion, or $10.81 per share, compared to $100.1 billion, or $8.04 per share, in 2024 [2] Stock Performance - The stock price dropped by 4.62 percent or $15.41, trading at $317.93 on Thursday [1] - The stock opened at $313.20 and traded within a range of $306.92 to $326.55 throughout the day on the Nasdaq [1] - Trading volume totaled approximately 15.81 million shares, lower than the average volume of roughly 23.25 million shares [1] - The stock is currently trading within its 52-week range of $142.66 to $350.15 [2]

Core Viewpoint - Alphabet Inc. experienced a significant stock decline of 7% to $309.32, attributed to a sharp increase in projected capital expenditures despite strong fourth-quarter sales of $97.23 billion, surpassing the consensus estimate of $95.2 billion [1][5][10] Financial Performance - Alphabet's fourth-quarter revenue reached $97.23 billion, exceeding the consensus estimate of $95.2 billion, with strong performance in advertising and cloud revenue [7][10] - The company forecasted capital expenditures could surge to $185 billion in 2026, significantly higher than the anticipated $119.5 billion, raising concerns about immediate margin compression and long-term ROI [2][3][8] Market Reaction - The stock market reacted negatively, with the S&P 500 falling 0.8% and technology stocks leading the decline, marking the sixth loss in seven trading sessions [2][4][11] - Alphabet's Class A and Class C shares fell more than 4%, resulting in a loss of tens of billions in market value [5][10] Strategic Focus - CEO Sundar Pichai emphasized that the investments in AI are expected to drive growth in search and other core businesses, arguing that AI is expanding rather than cannibalizing existing services [3][9] - The majority of the projected capital expenditures will be allocated to data centers, custom AI chips, servers, and network infrastructure to support generative AI products across various platforms [8][10] Broader Market Context - The decline in Alphabet's stock contributed to a broader pullback in U.S. equities, with semiconductor and hardware stocks also facing pressure due to cautious outlooks despite beating earnings expectations [11][12] - Economic data indicated a potential cooling labor market, with higher-than-expected jobless claims and significant layoffs announced, contributing to market caution [14][16]

Market Overview - The S&P 500 fell 0.8%, marking its sixth loss in seven days since reaching an all-time high [4][6] - The Dow Jones Industrial Average declined by 326 points, or 0.7%, while the Nasdaq composite dropped 0.8% [4][6] - Global stock markets also experienced declines, with London's FTSE 100 down 0.9%, France's CAC 40 down 0.6%, and Germany's DAX down 1.1% [5][6] Company Performance - Alphabet's stock fell 5.4% despite reporting stronger-than-expected profits, as investors were concerned about its aggressive AI spending plans, which could double to approximately $180 billion this year [4][6] - Qualcomm's shares dropped 9.1% after it issued a weaker profit forecast due to an industry-wide memory shortage affecting handset demand, despite reporting better-than-expected profit and revenue [5][6] - Estee Lauder's stock fell 16.9% even after beating earnings estimates, as the company warned that tariff-related pressures could reduce profits by about $100 million in its fiscal year [5][6] Economic Indicators - US unemployment benefit applications increased more than expected, indicating potential acceleration in layoffs, with layoffs announced by US-based employers surging to 108,435 last month, the highest since October [5][6] - The yield on the 10-year Treasury fell to 4.23% from 4.29%, reflecting a weaker labor outlook and raising expectations for potential interest rate cuts by the Federal Reserve [5][6] Commodity Market Movements - Silver prices tumbled 12.1% amid volatility after a record-breaking rally stalled, while gold fell 1.9% to $4,855 per ounce after fluctuating sharply [5][6] - Bitcoin, referred to as "digital gold," briefly slipped below $70,000, down from a record above $124,000 in October [5][6]

Alphabet ( GOOGL ) stunned Wall Street not with its top- and bottom-line beats, but with a very aggressive FY 2026 capex plan. AI investments have come under scrutiny on the street, given the less-solid thematic backdrop today compared to several monthsFreelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment firms in a cost-efficient way. My pass ...

Alphabet stock (NASDAQ: GOOGL) plunged over 7% in the pre-market trading on Thursday, despite beating revenue and profit estimates for the fourth quarter. The sharp sell-off came despite some impressi... ...

Core Insights - Alphabet Inc's investment in SpaceX, made in 2015 for $900 million at a $12 billion valuation, has significantly appreciated, potentially worth close to $100 billion today [1][2] - The proposed merger between SpaceX and xAI could lead to a combined valuation of approximately $1.25 trillion, with Alphabet's stake estimated to be worth $87–$90 billion, and possibly reaching $100 billion if an IPO occurs in mid-2026 [2] - Alphabet recorded an $8 billion unrealized gain in early 2025 due to the increase in SpaceX's valuation, highlighting the hidden value of this investment [3] Investment Implications - Many investors focus on Alphabet's core businesses like search, ads, and AI, overlooking its significant stake in SpaceX, which could serve as a powerful catalyst for growth [4] - The investment in SpaceX represents Alphabet's best return on investment, surpassing returns from its own products like Pixel and Fiber, emphasizing the value of strategic investments [5] - Alphabet's balance sheet includes a substantial asset in the form of a private stake in SpaceX, which could soon translate into significant financial returns [5]

Group 1 - The core point of the news is that Alibaba's Qianwen project is launching a significant Spring Festival red envelope campaign with an investment of 30 billion yuan, marking the largest investment in Alibaba's history for a Spring Festival event [1][4] - The Qianwen app will implement a "free meal" policy for the red envelope campaign, covering major Alibaba businesses such as Taobao, Flash Purchase, Fliggy, Damai, Gaode, and Hema [1] - The campaign is part of a broader strategy to engage users during the Spring Festival, coinciding with a competitive AI landscape among major tech companies [4] Group 2 - Qianwen app has announced exclusive sponsorship of the Spring Festival Gala on four major television stations, including Oriental TV, Zhejiang TV, Jiangsu TV, and Henan TV, enhancing its visibility [4] - The interactive feature of the Qianwen app allows viewers to participate in real-time during the Spring Festival Gala, providing an opportunity to win large red envelopes [4]

A rattled market will have to deal with another massive AI spending pledge. ...