Sundar Pichai Raised Alphabet's 2026 Capex Forecast to as Much as $205 Billion, Sending the Stock Down 7%. Is This an Overreaction Investors Should Buy Into?
Alphabet shares may have seen a short-term dip, but the long-term outlook remains bright.
Overview
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) reported its 2026 second-quarter earnings on July 22, announcing its capital expenditures would be higher than previously anticipated. Instead of an earlier forecast of $180 billion to $190 billion, Alphabet now expects to spend between $195 billion and $205 billion in 2026.
What followed was a drop in the stock price, which wasn't a surprise, given that capital expenditures on building out artificial intelligence (AI) are being more closely scrutinized. But while the stock price slid roughly 7% following the news, Alphabet may still offer a long-term buying opportunity.
Image source: The Motley Fool.
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Originally published at www.fool.com.