Alphabet Slumps 3.5% as Capex Guidance Jumps to $205B, Overshadowing Q2 Beat
GOOG sits 76% above its 52-week low of $188.495.
Summary
Alphabet reported Q2 revenue of $119.8B, beating the $116.93B estimate, but EPS of $2.85 missed the $2.89 consensus. The stock fell 3.5% after-hours as the company raised its 2026 capex guidance to $195B-$205B, up from $180B-$190B, signaling aggressive AI infrastructure spending. Cloud revenue surged 82% to $24.77B, with backlog growing to $514B, and the Gemini app reached 950M monthly users. Net income was boosted by nearly $100B in investment gains from Anthropic and SpaceX. The capex hike and EPS miss are the key drivers of the negative reaction, despite strong top-line growth and cloud momentum.
At the time of this announcement, GOOG was trading at $331.21 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.2T. The 52-week trading range was $188.50 to $404.47. This news item was assessed with negative market sentiment and an importance score of 9 out of 10. Source: CNBC TV18.