New York, January 27, 2026, 17:39 EST — After-hours
- Alphabet Class C shares (GOOG) gained roughly 0.4% after hours.
- EU regulators have launched Digital Markets Act proceedings targeting access to Google Search data and Gemini AI features.
- Investors are zeroing in on Alphabet’s Feb. 4 earnings for clues on cloud and AI performance.
Alphabet’s non-voting Class C shares (GOOG) gained roughly 0.4%, closing at $335 in after-hours trading Tuesday, following the European Union’s launch of a new probe targeting broader access to certain Google services. During regular hours, the stock fluctuated between $333.94 and $338.80.
Timing is crucial. As Big Tech earnings season ramps up, all eyes turn to Alphabet next week, where its AI strategy will get more scrutiny than it has in years.
Investors are demanding clear evidence that Alphabet’s new AI features boost revenue without squeezing margins. They’re also focused on the costs Alphabet faces to stay competitive, and whether regulatory hurdles might force product adjustments just as those investments begin to impact earnings.
The European Commission launched two “specification proceedings” under the Digital Markets Act, clarifying how the rules apply. One targets rival AI providers seeking access to features within Google’s Gemini services; the other demands access to anonymised Google Search data, including ranking, query, click, and view details. Google’s senior competition counsel Clare Kelly responded, saying, “Android is open by design,” but warned that tighter rules risk “compromising user privacy, security, and innovation.” Reuters
Just one day before, Google agreed to a $68 million settlement in a proposed class action lawsuit claiming its voice assistant recorded and shared private conversations without consent after false activations, court documents show. The deal now awaits approval from U.S. District Judge Beth Labson Freeman in San Jose, California.
The regulatory pressure intensifies just as the AI sector moves from hype to earnings reports. Alphabet has stood out among the top performers, with high expectations now built in.
Analysts forecast that Microsoft, Meta, Amazon, and Alphabet will boost AI spending by roughly 30%, pushing total investments past $500 billion this year and raising the stakes for tangible returns. Alphabet’s stock jumped about 29% in Q4 2025, buoyed by strong reception of Google’s Gemini 3 model and a new deal powering Apple’s revamped Siri. David Wagner, head of equities at Aptus Capital Advisors, said, “Alphabet has the upper hand in the AI race.” LSEG data suggests Google Cloud’s growth likely accelerated to around 35% in the October-December quarter, with Alphabet’s revenue projected to climb 15.5% to $111.37 billion. Reuters
Traders eye Alphabet’s report for signs on ad pricing and cloud growth, plus any news on integrating AI into Search. Forecasts on capital spending could prove just as crucial as revenue numbers.
The risk lies in the numbers leaving little margin for error. A weakened ad market, slower cloud expansion, or signs that AI products are eating into traditional search clicks could quickly shift sentiment. On top of that, the EU’s ongoing process introduces fresh uncertainty over how Google will need to share critical data and features.
Alphabet announced it will release its fourth-quarter and full-year 2025 earnings on February 4, followed by a conference call at 4:30 p.m. Eastern. The earnings report will be published before the call.
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