Google stock falls despite strong earnings and wave of price target hikes
Alphabet's stock dropped despite beating earnings estimates due to high projected AI capital expenditure.Summary
Alphabet reported strong fourth-quarter 2025 earnings, with revenue of $113.8 billion and EPS of $2.82, surpassing Wall Street expectations. However, the stock fell as much as 7% on Thursday morning, primarily due to the company forecasting capital expenditures between $175 billion and $185 billion for 2026, raising investor concerns that AI infrastructure spending might exceed near-term monetization. Despite the initial selloff, analysts reacted positively, upgrading numerous price targets based on strong results and the continued integration of the Gemini AI model across Search, Ads, and Workspace. Price targets were raised by firms like JPMorgan, Barclays, and Canaccord, reflecting a generally bullish outlook on Alphabet's ongoing investment in AI and cloud.
(Source：Crypto Briefing)