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Alphabet Just Delivered a Great Quarter. So Why Did the Stock Fall?

Alphabet is determined to win the AI race, but not everyone is convinced.

Alphabet Just Delivered a Great Quarter. So Why Did the Stock Fall?

Published July 28, 2026 · Category: Finance

Overview

On paper, Alphabet (NASDAQ: GOOGL) did almost everything investors could have asked for. Revenue surged. Google Cloud delivered another blockbuster quarter. Search remained resilient despite growing competition from AI chatbots. Profitability improved, and management continued rolling out AI across nearly every major product.

Yet instead of celebrating, Wall Street sent the stock lower, down from $348 to $319 as of this writing. That may seem confusing at first. But the sell-off wasn't really about Alphabet's latest quarter. It was about whether the company is spending too much to win the AI race. That's the biggest concern that Wall Street has about the company.

Details

So, is Wall Street right? Or does the recent drop spell an opportunity for investors?

Continue reading

Source

Originally published at www.fool.com.

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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.