Alphabet signals big spending increase
|Alphabet plans to splash the cash in 2026
"Alphabet beat on both earnings and revenue, but the market took fright at the big forecast increase in capex for the year. A previous estimate of $199.50 billion was far too conservative, and the search engine giant now looks to spend 50% more. After years of Cloud revenue growth, it is now going all in to achieve a dominant position in AI."
"But the risk is clear - if this spending doesn't pay off, then trouble lies ahead. As earnings from the Mag7 continue to filter through, it seems 2025's big questions about whether all this spending can be justified are going to remain with us in 2026."
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