Google stock (NASDAQ: GOOG) tumbled more than 6% on Thursday even as parent company Alphabet reported surging revenue, record AI usage and what its chief executive called 'an amazing quarter', with investors instead zeroing in on the soaring cost of the tech giant's artificial intelligence build-out.
Alphabet's latest earnings update showed accelerating growth across Google Cloud, Search and Gemini, but the company also lifted its 2026 capital expenditure forecast to between $195 billion and $205 billion, while quarterly free cash flow turned negative.
