New York, Feb 4, 2026, 10:42 EST — Regular session
Alphabet Inc’s non-voting Class C shares (GOOG.O) dropped 1.8% to $334.62 by 10:34 a.m. EST Wednesday, slipping from an earlier high of $345.74. The stock kicked off at $343.71 before sliding to a new intraday low as investors braced for Google’s quarterly earnings after the bell.
Investors are rethinking which tech sectors stand to gain or lose from the latest AI surge. After Anthropic launched plug-ins for its Claude Cowork agent, software and data-analytics stocks took a global hit—even as Nvidia CEO Jensen Huang dismissed the idea that AI would replace software as “illogical.” J.P. Morgan’s Toby Ogg argued the sector was being “sentenced before trial.” Reuters
U.S. stocks tumbled sharply Tuesday amid lingering concerns, rattling traders ahead of Alphabet’s earnings and Amazon’s results due Thursday. “We’re seeing a lot of software companies across the spectrum get hit,” noted Art Hogan, chief market strategist at B. Riley Wealth. John Campbell, senior portfolio manager at Allspring Global Investments, added that many AI-related sectors appear “priced for perfection.” Reuters
Alphabet announced its quarterly earnings call will take place Wednesday at 4:30 p.m. Eastern (1:30 p.m. Pacific), following the release of fourth-quarter and full-year results. Investors will be focused on any shifts in the company’s commentary about AI deployments and data center spending.
Analysts expect earnings per share near $2.63 on revenue of roughly $111.3 billion, zeroing in on Google Cloud as companies ramp up AI-related workloads. Capital expenditure, or capex—the money spent on servers and data centers—will also draw scrutiny after a pricey year of expansions across Big Tech.
Google Cloud has inked a five-year deal with Liberty Global to roll out its Gemini AI models and cloud services across the cable giant’s European markets. “Our goal is simple: to use technology to cut through complexity and bring value to our customers and partners,” said Tara Brady, Google Cloud president for the EMEA region. Reuters
Regulators continue to cast a shadow. The U.S. government and most states announced in court filings they plan to appeal the remedies in the ongoing search case. A judge ruled Google holds a monopoly but dismissed stronger measures like forcing the company to divest Chrome or ending its default search deal with Apple.
Wednesday’s mixed action in U.S. stocks failed to ease jitters despite solid earnings from some firms. The S&P 500 software and services index dropped over 13% in the last six sessions—the sharpest decline since March 2020. Sean Clark, chief investment officer at Clark Capital, noted, “Strong earnings support the market’s valuations.” Reuters
Alphabet ended Tuesday at $340.70, but early trading saw the stock dip around $6 below that mark. The intraday volatility highlighted just how jittery traders remain ahead of major tech earnings reports.
Yet the situation is double-edged. If cloud growth slows, ad demand weakens, or spending jumps more than anticipated, a pre-earnings dip could spiral. The drawn-out antitrust appeal only adds fuel to the fire.
Traders will zero in on cloud revenue and margins, then shift to 2026 capex guidance during the exec Q&A on Wednesday. The next clear catalyst arrives with the earnings release and call at 4:30 p.m. ET.
