Market & financial news desk
Alphabet Inc. (GOOGL) fell more than 5% Thursday, trading near $323 and heading for one of its steepest single-day declines in over a year. The catalyst was not the quarterly results themselves, which were broadly strong, but what management said about how much it intends to spend.
What the Company Reported
Second-quarter revenue climbed 24% year over year to $119.8 billion, marking a twelfth straight quarter of double-digit growth, according to the company's results filed with the SEC. Operating income rose 30%, and operating margin widened by two percentage points to 34%. On the surface, little in that picture explains a selloff.
Where the Reaction Turned
The move came during the earnings call. Chief Financial Officer Anat Ashkenazi told analysts that full-year 2026 capital expenditure guidance was being lifted to a range of $195 billion to $205 billion, up from the prior $180 billion to $190 billion — and that spending would climb again in 2027. Shares dropped sharply within minutes of the disclosure.
The Technical Backdrop
The decline carried the stock below levels it had held for months. Alphabet had entered the report as one of the year's stronger large-cap technology performers, which left it with more room to give back when sentiment turned.