New York, Jan 29, 2026, 17:39 EST — After-hours
- Alphabet’s non-voting Class C shares (GOOG) climbed before leveling off in after-hours trading
- With Alphabet set to report on Feb. 4, investors are bracing as Big Tech’s AI spending draws sharper scrutiny
- A new settlement involving Google and a fresh PwC-Google Cloud security initiative are shaking up the headlines
Alphabet Inc’s non-voting Class C shares (GOOG) climbed 0.7% during Thursday’s regular session, then held steady after hours at $338.66. After-hours trading takes place electronically following the 4 p.m. market close.
The stock is entering a packed earnings season for megacap tech, with investors demanding evidence that heavy AI investments are boosting revenue, not just adding costs. Spending by the largest tech companies is forecast to jump 30% this year, topping $500 billion. Alphabet stands out, buoyed by investor focus on Google’s Gemini 3 and a recent AI partnership with Apple, analysts say. “Alphabet has the upper hand in the AI race,” noted David Wagner, head of equities at Aptus Capital Advisors. 1
The mood has soured noticeably. Investors are hitting companies that boast about AI but ramp up capital expenditure—spending big on data centers, chips, and network capacity—without delivering growth to back it up. “The market appears to be questioning whether these massive capital expenditure hikes will generate sufficient returns,” said Jesse Cohen, a senior analyst at Investing.com. 2
PwC announced a three-year, $400 million collaboration investment with Google Cloud to boost AI-driven security operations. “Security professionals are under pressure to move faster and operate smarter,” said Morgan Adamski of PwC. Denise Walter from Google Cloud added the goal is to “translate agentic AI into real operational impact.” 3
Alphabet set a key date on its calendar: the company will release its fourth-quarter and full-year earnings in a conference call scheduled for Wednesday, Feb. 4, at 4:30 p.m. ET. Investors will be zeroing in on ad revenue trends, the pace of Google Cloud’s expansion, and how quickly expenses are climbing to back AI initiatives. 4
Legal news is making waves too. Google has agreed to a $135 million settlement in a proposed class action alleging that Android collected users’ cellular data without consent, though the company denies any misconduct. The deal still needs a judge’s green light and involves changes like securing consent during phone setup, simpler options to halt data transfers, and new disclosures in Google Play’s terms, according to a filing. 5
The risk for bulls is straightforward: expectations have soared. Should Alphabet’s earnings reveal a weaker ad market, slower cloud growth, or rising costs that pressure margins, the stock could lose ground fast.
Timing plays a role too. Security and cloud partnerships make headlines, but investors usually focus on revenue that hits the books quickly, rather than longer-term consulting and rollout projects.
Looking ahead to the next session, focus remains on the mixed signals from Big Tech earnings and evolving opinions on AI spending. Alphabet’s key date is Feb. 4, when it reports earnings followed by the 4:30 p.m. ET call.
