US Stock Market Move | Alphabet Inc. Class C (GOOGL.US) fell more than 6% as a sharp increase in capital spending raised concerns in the market.

On Thursday, Alphabet Inc. Class C (GOOGL.US) fell more than 6% to $320.16. In terms of news, Alphabet Inc. Class C's parent company Alphabet announced its second-quarter performance. Alphabet's capital expenditure for the second quarter was $44.92 billion, exceeding market expectations of $44.15 billion. The company raised its capital expenditure guidance for the fiscal year 2026 by $15 billion to a range of $195 billion to $205 billion, a significant increase from the previous guidance of $180 billion to $190 billion, and also expects a substantial increase in capital expenditure in 2027. Bank of America Securities expects the company to have negative free cash flow of $16 billion in 2026 and the same amount in 2027. The financial report shows that in the second quarter ending on June 30, Alphabet achieved revenue of $119.796 billion, an increase of 24% year-on-year; calculated at fixed exchange rates, it increased by 23%, marking the twelfth consecutive quarter of double-digit revenue growth. Operating profit increased by 30% year-on-year to $407.7 billion, with an operating profit margin increasing by 2 percentage points to 34%. In particular, Google Cloud revenue reached $24.768 billion, higher than the market expectation of $22.42 billion, with an 82% year-on-year increase, achieving the fastest growth in recent years, indicating that AI investments are translating into commercial returns. Search advertising revenue was $63.27 billion, slightly below the market expectation of $63.28 billion. Alphabet holds stakes in multiple companies including Anthropic and SpaceX, and the significant increase in unrealized gains from equity securities drove other income for the quarter to $97.98 billion, leading to a 298% year-on-year increase in net profit attributable to common shareholders to $1121.07 billion.