Why did Alphabet stock fall after an earnings beat?

The company beat on EPS ($2.82) and revenue ($113.83B), but guided 2026 capex to $175–185B for AI data centers. That scale implies near-term pressure on margins and free cash flow. Markets quickly priced the spending ramp, even as ads and Cloud trends remained constructive.

How significant is the $185B AI capex plan?

It is very large, aimed at data centers, networking, and custom chips to support Gemini and Cloud. With TTM capex-to-revenue at 20.2% and low net leverage, Alphabet can fund it from cash flow and cash on hand. The key is utilization and pricing to lift returns over time.

What does this mean for Google ad revenue?

Google ad revenue looked resilient, which supports the core profit engine. The AI capex is primarily about infrastructure for Gemini and Cloud. If AI improves search quality and advertiser tools, ads can benefit. Short term, the main headwind is cash flow, not ad demand.

How should Swiss investors think about currency risk?

GOOGL trades in USD. CHF-based investors face USD/CHF fluctuations on top of share moves. Consider partial hedging or staggered buys to reduce timing risk. Align position size with volatility, and review FX alongside earnings dates and guidance updates each quarter.

Are NVDA or AVGO better indirect plays on Alphabet’s spend?

They can benefit from AI infrastructure demand. NVIDIA supplies GPUs and platforms, while Broadcom provides key chips and networking. These are different risk profiles and valuations. Diversified exposure across the stack can smooth outcomes, but it does not remove cyclical and execution risks.

Global Market Insights

GOOGL Stock Today: February 05 – EPS Beat, $185B AI Capex Weighs on Shares

ByHuzaifa Zahoor February 5, 2026February 5, 2026

Alphabet stock today is in focus for Swiss investors after an EPS beat and a sharp capex signal. Q4 EPS was $2.82 on revenue of $113.83B, topping expectations. Management guided 2026 capital spending to $175–185B for AI data centers. That scale supports Gemini and Google Cloud but pressures margins and free cash flow near term. Google ad revenue looked resilient, keeping the core engine healthy. We break down what this means for CHF-based portfolios, technicals, peers, and key catalysts to watch this month.