Alphabet Shares Decline Amid Rising AI Investment Despite Strong Earnings
Alphabet (NASDAQ:GOOG) shares fell approximately 3.5% in pre-market trading on July 23, 2026, as investors focused on the company's sharply increased capital expenditure for artificial intelligence infrastructure rather than its strong quarterly financial results. The second-quarter capital expenditure reached $44.9 billion—double that of a year ago—and Alphabet raised its full-year guidance to between $195 billion and $205 billion, up from previous forecasts. This aggressive spending led to negative free cash flow of -$5.9 billion for the quarter. Despite these concerns, Alphabet reported strong financial performance with revenue growing 24% year-over-year to $119.8 billion and earnings per share reaching $9.11—well above expectations. Google Cloud saw an impressive 82% increase in revenue to $24.8 billion.
Tickers: $GOOG
Topics: AI investment capital expenditure free cash flow revenue growth stock price movement