Alphabet's shares fell on Thursday after the company beat Wall Street's expectations on earnings and revenue, with artificial intelligence spending projected to increase hugely this year.
The Google parent closed nearly 2% lower on Wednesday. After the bell, Alphabet reported fourth-quarter revenue of $113.83 billion, above the $111.43 billion estimate from analysts polled by LSEG.
Its Google Cloud division had $17.66 billion in revenue versus a forecast of $16.18 billion, according to StreetAccount. YouTube Advertising posted $11.38 billion in revenue versus the estimated $11.84 billion.
The tech giant said it would significantly increase its 2026 capital expenditure to between $175 billion and $185 billion — more than double its 2025 spend. A significant portion of capex spending would go toward investing in AI compute capacity for Google DeepMind.