Amid Capex Concerns, Should You Buy, Sell, or Hold Alphabet Stock?

Alphabet (GOOGL) recently posted robust fourth-quarter and full-year results, with its annual revenue surpassing the $400 billion mark for the first time in its history. Growth accelerated across Alphabet’s core businesses, driven largely by artificial intelligence (AI)-led capabilities, while its backlog expanded meaningfully.

While its strong Q4 performance should have propelled the stock higher, Alphabet’s share price instead lost steam. The primary reason is due to investor concern over capital expenditures (capex). As Alphabet continues to deepen its AI capabilities and scale infrastructure to meet rising demand, management has guided for a substantial increase in spending. Capex is expected to reach between $175 billion and $185 billion in 2026, nearly double the $91.5 billion invested in 2025, with spending set to ramp up as the year progresses.