Changes in US stocks | Google (GOOGL.US) fell more than 6%, and a sharp increase in capital expenditure raised market concerns

The Zhitong Finance App learned that on Thursday, Google (GOOGL.US) fell more than 6% to $320.16. According to the news, Google's parent company Alphabet announced results for the second quarter. Alphabet's second-quarter capital expenditure was US$44.92 billion, exceeding market expectations of US$44.15 billion. The company raised its capital expenditure guidance for the 2026 fiscal year by US$15 billion to the range of US$1950 billion to US$205 billion, which is a significant increase from the previous guideline of 180 billion to 190 billion dollars. At the same time, it is also expected that capital expenditure will continue to increase significantly in 2027. Bank of America Securities anticipates that the company's free cash flow for the full year 2026 will be negative $16 billion, and will also be negative in 2027.

Financial reports show that for the second quarter ending June 30, Alphabet achieved revenue of 11.796 billion US dollars, a year-on-year increase of 24%; an increase of 23% based on a fixed exchange rate, achieving double-digit revenue growth for the 12th consecutive quarter. Operating profit increased 30% year over year to US$40.77 billion, and operating margin increased 2 percentage points to 34%.

Among them, Google Cloud's revenue reached 24.768 billion US dollars, higher than market expectations of 22.42 billion US dollars, and surged 82% year on year, the fastest growth rate in recent years, indicating that AI investment continues to turn into commercial returns. Search ad revenue was $63.27 billion, slightly below market expectations of $63.28 billion.

Alphabet holds shares in a number of companies, including Anthropic and SpaceX. Affected by a sharp increase in unrealized earnings from equity securities, the company's other revenue for the quarter reached US$97.98 billion, driving net profit attributable to common shareholders up 298% year-on-year to US$112.107 billion.