After quarterly results Wednesday, Alphabet shares fell 2.5% Thursday morning to about $324. Shares slid 4% over five days amid rising concern about an AI bubble.
Alphabet reported $2.82 earnings per share and $113.8 billion in revenue, beating estimates. The stock regained some ground after hours, yet it slid again Thursday morning on investor worries.
The company guided capital spending of $175 billion to $185 billion for 2026, nearly double 2025 levels. Investors fear overspending on AI, a worry that also pressured chip names like NVIDIA and AMD.
The Gemini AI platform reached 750 million monthly active users, showing broad adoption (Ed. note: This metric underscores rapid product uptake). CFO Anat Ashkenazi explained the spending plans on the earnings call and reassured investors about the company’s financial position.
Analysts remained mostly positive, citing potential growth in AI and cloud revenue. Price targets ranged from $279 to $400, with firms such as Wedbush, Guggenheim, Rosenblatt, and DA Davidson offering varied ratings and outlooks.
