New York, Feb 7, 2026, 09:34 EST — Market closed.
Alphabet’s Class C shares (GOOG) dropped 2.48% to $323.10 on Friday. The stock continued to slide after Google’s parent company warned of a significant AI-related spending surge. 1
U.S. markets are closed for the weekend, leaving investors to chew on whether Big Tech’s AI spending still looks like just another cost squeeze, or if the growth narrative finally takes over. According to a Reuters review, last week’s trading brought new nerves about 2026 spending plans across the industry. Andrew Wells, chief investment officer at SanJac Alpha, called the AI trade “got too pricey” as traders kept baking years of optimism into valuations. 2
The broader market finished the week on stronger footing. The Dow pushed past 50,000 for the first time, lifted by investors moving money into sectors outside the familiar mega-cap tech space. Horizon Investment Services CEO Chuck Carlson highlighted the shift, noting “broadening … other than just the tech, AI trade.” 3
Alphabet set off fireworks earlier in the week, projecting 2026 capital expenditures at $175 billion to $185 billion—almost doubling from $91.45 billion in 2025—as the company looks to unclog computing bottlenecks with more data centers, servers, and networking gear. CEO Sundar Pichai told investors on the call that AI investments are fueling “revenue and growth across the board.” D.A. Davidson’s Gil Luria noted growth rates “importantly higher than Microsoft Azure,” and Zacks’ Ethan Feller added that cloud growth is “no longer a ‘show me’ story.” 4
Friday brought a bumpy ride. GOOG swung from $320.32 up to $331.51, wrapping up the day with around 33.9 million shares traded—more than its usual volume.
Insider moves were back in focus after a Form 4 showed Pichai offloaded 32,500 Class C shares on Feb. 4. Two days later, 1,348,607 performance stock units vested for him, according to the filing, with 676,955 of those shares set aside to pay taxes. The document confirmed the transactions followed a Rule 10b5-1 prearranged plan. 5
Beyond the figures, Alphabet’s dealings with U.S. government agencies occasionally spark controversy. More than 800 Google staffers have signed a petition demanding the company cut off its cloud service contracts with ICE and CBP, according to 7 .
The main threat to the stock comes down to spending. Should ad growth stall or cloud demand stop ramping up, watch for investors to shift focus—margins and cash flow could suddenly matter more than another AI showcase.
The schedule gets busier. Investors brace for fresh U.S. labor and inflation numbers next week—potential catalysts for shifting rate bets and tech stocks with hefty valuations. The Employment Situation lands Wednesday, Feb. 11, followed by the Consumer Price Index on Friday, Feb. 13; both reports hit at 8:30 a.m. Eastern. 6
GOOG’s first real test comes at Monday’s open. The focus: will buyers come in on the dip, or does the market keep pushing management to show clearer evidence that its big AI investments are actually driving lasting revenue?
