Alphabet stock fell 7.13% on Thursday as the market reacted to second-quarter capital expenditure figures and raised full-year guidance.
Alphabet stock dropped 7.13% on Thursday, erasing approximately $293 billion in market value as investors reacted to the company's second-quarter capital expenditures. The spending reached $44.9 billion, slightly exceeding Wall Street forecasts of $44.7 billion. Furthermore, executives raised the full-year capital expenditure guidance to a range of $195 billion to $205 billion. The market's reaction suggests that despite the positive outlook on artificial intelligence, investors were cautious regarding the pace of spending. This trend was also visible in other tech giants; Tesla stock plunged 14.5% to yearly lows as Elon Musk committed $25 billion in capital expenditures for 2026. In contrast, Intel saw a significant recovery, recording its strongest revenue growth rate in 15 years. This growth was bolstered by a strategic move by the administration, which converted CHIPS Act funding into an $8.9 billion equity stake in Intel. Since the investment, Intel stock has skyrocketed 320%.