Alphabet’s Earnings Beat Catalyzes Google Stock Recovery Amid AI Expansion
Alphabet Inc. defied Wall Street expectations with fourth-quarter earnings of $2.82 per share on $113.83 billion revenue, sparking a late-session recovery in Google shares. The 30% net income surge to $34.5 billion silenced skeptics of the tech giant's aggressive AI spending.
Google Cloud's 48% revenue jump to $17.66 billion demonstrated tangible returns on AI infrastructure investments. While initial investor jitters emerged over projected $175-185 billion 2026 capital expenditures, the Gemini AI platform's market traction provided counterbalance.