“A very valuable and profitable company in SpaceX has acquired a cash furnace named xAI.”
Posting strong Q4 results yesterday evening, Alphabet (GOOGL) stock still dipped half a percentage point in Thursday's trading session as investors pondered its massive spending plans.
Alphabet NASDAQ: GOOGL, the world's second-largest public company, once again delivered a standout earnings report, all but reinforcing its dominance across search, cloud, and artificial intelligence.
Shares in Alphabet Inc. are tracking lower following the release of its Q4 results. GOOGL's results were positive, and the management team provided a positive outlook that included significant AI spending. I believe the declines are a healthy pause following a nearly 70% gain over the last six months.
Alphabet delivered strong Q4 2025 results, with Search and Cloud both achieving double-digit top-line growth. Alphabet's Cloud segment surged 48% Y/Y to $17.7B in revenue and $5.3B in operating income, driven by AI adoption and Gemini's market share gains. Alphabet is aggressively ramping CapEx, planning $175–$185B in FY 2026, positioning for further AI and Cloud expansion.
Alphabet stock has led the Magnificent 7 over the last six month and yesterday's earnings report shows exactly why.
GOOGL's Q4 results shine as AI-driven growth in Search, YouTube, and Cloud propel revenues and earnings well past estimates.
Shares of Google parent company Alphabet Inc (NASDAQ:GOOG) fell more than 2% to about $325 on Thursday following the company's fourth quarter earnings report, but analysts are maintaining a bullish stance, highlighting the company's accelerating AI and cloud adoption as key drivers for future growth. Bank of America reiterated a ‘Buy' rating with a $370 price target, noting that the quarter “strengthens the thesis that Google search activity will accelerate from new AI use cases” and that AI is “structurally driving higher Search monetization.
Alphabet Inc. maintains a Strong Buy rating, driven by robust Q4 results and a $400B annual revenue milestone. Google Cloud revenue surged 48% to $17.7B, with backlog doubling year-over-year to $240B, underlining AI-driven upsell momentum. 2026 CapEx guidance is $175–185B, nearly double 2025, but justified by strong cloud demand and a rapidly expanding backlog.
ETFs to watch as Alphabet's earnings beat Q4 estimates, but heavy AI-driven capex weighed on market sentiment.
Shares declined Thursday as Google's staggering $185 billion capital-expenditure forecast overshadowed a blowout fourth quarter.
Alphabet (GOOGL) shares slumped Thursday after the Google and YouTube parent laid out massive spending plans to support its AI ambitions.