Alphabet Lifts Capex Outlook to $205B, Shares Fall on Supply Constraints
GOOG sits 73% above its 52-week low of $188.7.
Summary
Alphabet raised its 2026-2027 capex forecast to $205 billion from $190 billion, citing supply constraints amid surging AI demand. Shares fell Thursday as the increase disappointed investors who had expected even higher spending—Wall Street was modeling around $260 billion for 2027. JPMorgan traders warned that a capex cut or smaller buyback would shift them bearish, and prominent investors Steve Eisman and Paul Meeks echoed that a pullback signals weaker demand. This follows Alphabet's $80 billion equity raise in June, which Wells Fargo noted caused only 2% dilution. The lowered spending trajectory raises questions about the pace of AI infrastructure buildout and could pressure hyperscaler-related markets.
At the time of this announcement, GOOG was trading at $327.17 on NASDAQ in the Technology sector, with a market capitalization of approximately $4T. The 52-week trading range was $188.70 to $404.47. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Binance News.