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Alphabet hikes 2026 capex by $15 B, shares tumble 7%

7/25/2026

50 7 Full Breakdown

Summary

Story summary

Alphabet Inc. raised its 2026 capital expenditure to $195-$205 billion, $15 billion above the prior plan.
The company burned $5.9 billion in Q2 and posted a $5.8 billion free-cash-flow deficit.
Google Cloud revenue rose 82% to $24.8 billion.
Shares fell 7.13% to $317.69 on July 23, causing a $787 billion loss in the Magnificent Seven index.
The median price target rose to $430, 26% above the close.

History

Historical Context

AWS debuted in 2006 with S3 and EC2, turning Amazon’s internal tools into the first public IaaS. Its rapid growth helped define the hyperscaler trio—AWS, Microsoft Azure (launched 2010) and Google Cloud—who together captured about 67% of the cloud-infrastructure market by 2023, with AWS alone holding 31% share. This base supports global cloud spending that reached $706 billion in 2023.

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Story summary

Alphabet Inc. raised its 2026 capital expenditure to $195-$205 billion, $15 billion above the prior plan.
The company burned $5.9 billion in Q2 and posted a $5.8 billion free-cash-flow deficit.
Google Cloud revenue rose 82% to $24.8 billion.
Shares fell 7.13% to $317.69 on July 23, causing a $787 billion loss in the Magnificent Seven index.
The median price target rose to $430, 26% above the close.

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