"Alphabet's $175-185 billion CapEx guidance for 2026 sent shockwaves through the market. That's infrastructure spending is on a scale few companies can match, aimed squarely at AI buildout and cloud expansion. The stock fell 7% post-Q4 earnings on February 5th as investors digested what this means for near-term profitability. To fund the expansion, Alphabet issued $20 billion in multi-tranche bonds on February 10, including a rare 100-year sterling bond worth £1 billion. The bond sale itself knocked the stock down another 2.1%."
"On February 12, EU regulators approved Alphabet's $32 billion acquisition of Wiz, clearing a major antitrust hurdle. That news briefly lifted the stock, but regulatory pressure elsewhere continues mounting. The European Publishers Council filed an antitrust complaint over Google's AI Overviews, alleging the company uses publisher content without fair compensation. Meanwhile, the UK's Competition and Markets Authority forced Google and Apple to commit to app store changes, including non-discrimination policies and transparent ranking systems."
Alphabet's shares fell 5.29% this week to $306.02, underperforming the S&P 500 and Nasdaq-100 and leaving the Magnificent 7 stocks negative year-to-date. The company guided $175–185 billion of CapEx for 2026 aimed at AI buildout and cloud expansion, sparking a 7% post-earnings drop amid concerns about near-term profitability. Alphabet issued $20 billion of multi-tranche bonds, including a £1 billion 100-year sterling bond, which weighed on the stock. Zacks Research maintains a Hold rating citing overvaluation despite solid fundamentals. EU approval of the $32 billion Wiz acquisition cleared an antitrust hurdle while other regulatory complaints and UK app-store mandates increase oversight.
Read at 24/7 Wall St.
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