Why Google Beat, but Share price drop 5%

Deonc
02-05 23:25

Google parent Alphabet shares fall 5% after earnings beat. Here's what's happening

Published Thu, Feb 5 2026 6:10 AM EST

Updated 44 Min Ago

Sawdah Bhaimiya

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KEY POINTS

Google parent Alphabet's shares fell on Thursday after the company beat Wall Street's expectations on earnings and revenue.

The company said it would increase spending on artificial intelligence in 2026, which has spooked investors.

Investors are dumping software stocks this week over concerns that AI tools could replace traditional software products.

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$Alphabet(GOOGL)$  


Alphabet's shares fell 5% on Thursday after the company beat Wall Street's expectations on earnings and revenue, with AI spending projected to increase hugely this year.


The Google parent shed 4.9% in premarket as of 7:50 a.m. ET, after closing nearly 2% lower on Wednesday. After the bell, Alphabet reported fourth-quarter revenue of $113.83 billion, above the $111.43 billion estimate from analysts polled by LSEG.



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Google parent Alphabet shares fall 5% after earnings beat. Here's what's happening

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