- Alphabet shares slipped about 1.8% at the close before edging higher after hours, as investors balanced a Q4 earnings beat against sharply higher AI-driven capital spending plans for 2026.
- Analysts largely stayed bullish, with several firms raising or reiterating price targets in the $300–$340 range, citing strength in Cloud, advertising, and long-term AI monetization.
- Broader markets were mixed, with tech stocks under pressure during the session, while traders now focus on upcoming earnings guidance, ad demand trends, and returns on Alphabet’s massive AI investments.
On Wednesday, shares of Alphabet Inc. (NASDAQ: GOOG/GOOGL)—the parent company of Google—saw a notable move in both regular and after-hours trading following the release of fourth-quarter 2025 earnings and an aggressive capital expenditure outlook for 2026. Alphabet’s Class C shares closed down approximately 1.8 % to around $333.3 at the end of the regular session, marking a modest intraday retreat amid mixed market sentiment.(Trading Economics)
Investors grappled with robust quarterly results that generally beat expectations, including an 18 % year-over-year revenue increase to about $113.8 billion and 30 % profit growth, but also digested guidance showing a potential doubling of 2026 capex to roughly $175 – $185 billion as the company escalates AI infrastructure spending.(Reuters)
In after-hours trading, sentiment swung into positive territory as markets parsed the earnings beat and strategic outlook: shares were up modestly following the bell, reflecting increased confidence that Cloud and AI investments could unlock longer-term growth.(Reuters)
JPMorgan has previously increased its price target on Alphabet to the $300 area (from lower levels) while affirming an Overweight rating, citing strong AI positioning and Cloud momentum.(Investing)
Pivotal Research raised its target to $300 (and above in some reports) on persistent core strength and favorable antitrust outcomes.(Investing)
Citizens, in a separate note, reiterated a Market Outperform rating with a $340 target, pointing to autonomous driving subsidiary Waymo’s growth potential.(Investing)
The S&P 500 and Nasdaq Composite both closed lower, pressured by a tech sector pullback, even as the Dow Jones Industrial Average finished higher.(Investopedia)
Tech-heavy indices were especially sensitive to earnings results from major names, with several large U.S. tech stocks lagging due to valuation concerns and rotation into defensive sectors.(Investors)