Stock Market Today, Feb. 5: Alphabet Rallies Back to Even After Unveiling 2026 AI Spending Plan Near $185 Billion
Alphabet’s massive 2026 AI build-out is testing how much near-term cash flow pressure investors will tolerate, today, Feb. 5, 2026.
Today’s Change
(-0.20%) $-0.67
Current Price
$332.37
Key Data Points
Market Cap
$4.0T
Day’s Range
$306.47 – $332.51
52wk Range
$140.53 – $349.00
Volume
3.3M
Avg Vol
36M
Gross Margin
59.18%
Dividend Yield
0.25%
Alphabet (GOOGL 0.20%), a provider of search, advertising, and cloud computing services, closed Thursday at $331.25, down 0.54%. The stock wavered as investors analyzed Alphabet’s plan to increase 2026 AI capital expenditures to about $180 billion and weighed how higher spending would affect future cash flow and AI growth. Trading volume reached 87.1 million shares, about 136% above its three-month average of 36.8 million shares. Alphabet IPO’d in 2004 and has grown 13,097% since going public.
How the markets moved today
S&P 500 fell 1.20% to 6,800, while the Nasdaq Composite lost 1.59% to finish at 22,541, with tech names under pressure. Among interactive media & services peers, Meta Platforms closed at $670.21 (+0.18%), while Amazon finished at $222.69 (−4.42%), showing mixed moves among large-cap competitors.
What this means for investors
Alphabet initially dropped 4% today after the company reported earnings on Wednesday afternoon, but then rallied back to near breakeven. Sales and earnings per share grew by 18% and 31% during Q4, soaring past Wall Street’s consensus. While Google Search and YouTube delivered steady sales growth of 17% and 9% each, Alphabet’s cloud backlog stole the show as it soared 55% sequentially — more than doubling from Q4 2024.
Management announced it would spend roughly $180 billion on AI-related capex, which probably played a role in the market’s initial reaction. However, with Gemini Enterprise already selling 8 million seats, and the Gemini app home to 750 million monthly active users, the market was OK with the ROI so far.
