CNBC·3 min read·medium

Alphabet earnings updates: Stock sinks during analyst call as company hikes 2026 capex - CNBC

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Samantha Subin, MacKenzie Sigalos, Jonathan Vanian, Jordan Novet
Alphabet earnings updates: Stock sinks during analyst call as company hikes 2026 capex - CNBC
AI Summary

Alphabet reported strong revenue growth driven by its cloud division, but its stock price fell due to increased capital expenditure forecasts. The company is heavily investing in AI infrastructure and the development of its next-generation Gemini 4 model to remain competitive.

Google parent Alphabet reported better-than-expected revenue for the second quarter on Wednesday, driven by growth of 82% in its cloud business. But the stock sank in extended trading as the company lifted its forecast for capital expenditures.

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