Alphabet stock drops 5% as 2026 capex forecast hits $175–185B and YouTube ads miss targets

Alphabet shares fell 5% on Thursday morning after the company projected 2026 capital expenditures of $175 billion to $185 billion, more than twice its planned 2025 spending. The market reaction followed Q4 results that beat expectations, with earnings per share of $2.82 on $113.83 billion in revenue, but YouTube advertising revenue came in at $11.38 billion and grew just 9% year over year, missing estimates and unsettling investors.