Overview
- Alphabet’s Q4 showcased operational strength, with Google Cloud revenue up 48% to $17.7 billion and segment operating income up 154% to $5.3 billion.
- Alphabet guided to $175–$185 billion in 2026 capital spending and Amazon outlined roughly $200 billion, helping drive a sharp sell-off that erased about $1 trillion from big‑tech valuations.
- Money managers warn that hyperscaler outlays will mean heavier bond issuance, as tech notes weaken relative to Treasuries and investment‑grade spreads edge wider.
- Fresh automation tools from Anthropic accelerated disruption fears, sending software shares lower, with the IGV ETF dropping 12% over four sessions and about $611 billion in sector value wiped out before a partial rebound.
- Analysts remain constructive on Alphabet with price target hikes after earnings, and a San Francisco court ruling narrowed potential privacy-case damages by dismissing a $2.36 billion penalty while leaving a $425 million jury award in place.