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Google's extreme AI capex spending plans trigger a technical warning on the stock price
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The stock fell nearly 5% in premarket trading on Thursday as investors were spooked by Alphabet's capex spending trends.
Google's Q2, at a glance: Concerns on AI spending overshadowed a strong quarter for the company.
CEO Sundar Pichai highlighted strong momentum across AI products, including AI-powered Search, YouTube, and Gemini, as the company continues to scale its AI ecosystem.
The bottom line: With capex spending plans by the hyperscalers getting intense scrutiny by investors, it's reasonable to expect Alphabet's stock to test the 200-day moving average.
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