Why is GOOGL stock today under pressure?

Shares are reacting to Alphabet’s 2026 guidance for US$175–185 billion of AI-related capex, roughly double 2025. Investors are reassessing free cash flow and payback timelines, even after a Q4 beat and strong profitability. The sticker shock is driving a near-term reset in expectations across mega-cap tech and AI-linked names.

What exactly is Alphabet capex 2026 and where will it go?

Alphabet plans to invest US$175–185 billion in 2026, focused on data centers, GPUs, networking, and custom chips to power AI in Search, YouTube, and Google Cloud. The goal is to support rising AI workloads, improve latency and reliability, and deepen enterprise adoption of Cloud and Workspace.

Does Google Cloud growth offset higher Google AI spending?

It can help. Cloud revenue jumped 48% year over year, with improving profitability. If backlog expands and margins rise, Cloud can absorb part of the investment drag. The balance depends on utilization of new capacity, pricing, and how quickly AI features translate into higher revenue per user.

What should Canadian investors consider before buying GOOGL?

Think about USD exposure, account type, and event risk. GOOGL trades in U.S. dollars, so CAD-USD moves affect returns. U.S. dividends often face 15% withholding unless held in an RRSP. Size positions for volatility, and track earnings dates and capex updates that can move the stock.

What are key technical levels for GOOGL stock today?

Watch US$330 as near-term resistance and US$320 as first support. The 50-day average near US$321.65 is a useful line in the sand. A push above US$330 can open US$340–349. A break below US$320 brings US$312 and US$305 into focus, especially if volume expands.

Global Market Insights

GOOGL Stock Today, February 07: $180B 2026 AI Capex Spurs Selloff

ByHuzaifa Zahoor February 8, 2026February 8, 2026

GOOGL stock today is sliding as Alphabet’s 2026 AI capital spending outlook of US$175–185 billion triggers fresh ROI questions. Despite a Q4 beat and a 48% surge in Google Cloud revenue, investors are digesting the larger cash outlay and timing of returns. In early trade, GOOGL hovered near US$322, down about 2.5%. For Canadian investors, the debate centers on Google AI spending versus margin resilience, currency exposure to the U.S. dollar, and how this guidance reshapes mega-cap tech positioning in diversified portfolios.