tech
February 5, 2026
Alphabet shares close flat after earnings beat. Here's what's happening
Alphabet shares closed flat on Thursday after the company said it would hugely increase its AI spending in 2026.
TL;DR
- Alphabet's fourth-quarter revenue exceeded analyst expectations.
- Google Cloud revenue surpassed forecasts, while YouTube Advertising revenue fell slightly short.
- The company plans to significantly increase its 2026 capital expenditure to between $175 billion and $185 billion.
- A substantial part of the increased capital expenditure will fund AI compute capacity for Google DeepMind.
- Analysts believe Infrastructure, DeepMind, and Waymo costs are affecting Alphabet's profitability.
- Despite high costs, analysts see justification for the increased capex due to cloud growth and DeepMind's progress.
- The article notes a correction: Alphabet shares were down on Thursday, not flat.
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