Alphabet raises full-year capex guidance to $195B-$205B, spooking investors despite strong cloud revenue growth.
Alphabet shares fell below their 100-day moving average for the first time since April after the company reported a $44.9 billion Q2 capex, slightly above forecasts. The stock dropped nearly 5% in premarket trading Thursday, with the 200-day average near $323 now in focus.
The tech giant raised its full-year capex guidance to $195 billion-$205 billion from $180 billion-$190 billion, citing a “significant” increase planned for 2027. Despite strong performance in Google Cloud, where revenue jumped 82% to $24.8 billion, concerns over AI spending overshadowed results.
Google Cloud’s backlog surged to $514 billion, reflecting robust demand for AI infrastructure. Executives highlighted momentum in AI-powered products like Search, YouTube, and Gemini during the earnings call.