Why did Alphabet guide capex to $175–$185 billion for 2026?

Alphabet plans to scale data centers, custom silicon, and networks to meet AI demand from Gemini and Cloud customers. Management believes investing ahead of demand is needed to stay competitive. The trade-off is near-term pressure on margins and free cash flow while the company ramps utilization and monetization.

How did the market react to the capex outlook?

Shares fell up to 3% after-hours before trimming losses. The move shows investors are weighing strong Cloud growth against lower near-term cash generation. The google share price remains sensitive to updates on capex cadence, utilization, and any changes in management’s return targets for AI infrastructure.

Is Google stock expensive after the run-up?

Alphabet trades around 32x earnings with a free cash flow yield near 1.8%. Quality metrics are strong, including ROE near 35% and operating margin above 32%. Valuation assumes continued Cloud growth and AI monetization. Pullbacks are likely if execution slips or capex payback takes longer than expected.

What should Singapore investors watch specifically?

Focus on USD-SGD currency moves, broker fees, and tax on dividends. Track quarterly capex pacing, Cloud margins, and product updates tied to Gemini. For risk control, stagger entries and use stop levels near trend supports. A stable FX backdrop can help the google share price in SGD terms.

What are the key technical signals now?

RSI around 64 suggests strong momentum but near overbought. CCI above 100 confirms stretched conditions. MACD histogram is slightly negative, hinting at slowing momentum. Expect higher volatility, with ATR at 7.52. Traders should respect support near the 50-day average and watch reaction to AI capex headlines.

Global Market Insights

GOOGL Stock Today, February 06: $185B AI Capex Plan Jolts Sentiment

ByHuzaifa Zahoor February 5, 2026February 5, 2026

The google share price is in focus after Alphabet guided 2026 capital spending to $175–$185 billion to build AI infrastructure. Management paired the outlook with strong Google earnings and faster Gemini adoption, but higher spend can squeeze near-term margins and free cash flow for GOOGL holders. For Singapore investors, the key is how this capex wave balances growth in Cloud with valuation, cash returns, and currency exposure when trading US-listed Google stock.