Google’s Fourth-Quarter Performance Surprises Investors
On February 4, 2026, a pedestrian was spotted near the Google headquarters in Mountain View, California. The recent earnings report from Alphabet surpassed Wall Street expectations. Their cloud division has seen impressive growth, increasing revenue by almost 48% compared to last year.
However, the company has projected capital spending to reach between $175 billion and $185 billion in 2026. This forecast came as a shock to many investors since it’s set to more than double last year’s expenditures. After the announcement, Alphabet’s shares dropped nearly 3% before settling down to a 0.39% loss in after-hours trading.
Interestingly, Broadcom seemed to benefit from this news, as its shares surged over 6% after hours. This came after a tough regular trading session where Broadcom had dipped by 3.8%. Other tech stocks, like Advanced Micro Devices, also faced challenges, with a significant 17.3% decline attributed to disappointing first-quarter expectations.
The Nasdaq Composite index experienced a loss of 1.51%, while the S&P 500 fell 0.51%—marking five negative sessions out of six. In contrast, the Dow Jones Industrial Average managed to gain 0.53%, boosted by stocks like Amgen and Honeywell.
Meanwhile, confidence in AI advancements has wavered lately, although CNBC Investing Club’s Jim Cramer remains hopeful about Korean chipmakers, praising Samsung Electronics and SK Hynix as progressive companies. He expressed a desire to work for them if he were based in South Korea.
On another note, silver prices have seen volatility, dropping by about 16% on Thursday after a brief two-day boost.
In Europe, BNP Paribas reported better-than-expected profits for the fourth quarter, while Shell fell short of its profit targets.
Looking forward, the European Central Bank and the Bank of England will announce monetary policy decisions on Thursday, but no changes to interest rates are anticipated.
What You Need to Know Today
- US Proposes Significant Mineral Trade Bloc: The US has initiated partnerships with allies to adjust price floors and enhance financing in mineral trade.
- China’s EV Market Slows: BYD reported its lowest domestic sales in nearly two years, with declines seen across several major electric vehicle brands.
- China Reiterates Stance on Taiwan: President Xi Jinping advised careful handling of arms sales to Taiwan during a conversation with U.S. President Trump.
- US Indexes Experience Decline: The S&P 500 continued its descent, impacted heavily by technology stocks, while Asia-Pacific markets also fell, led by South Korea’s Kospi.
- [PRO] Concerns Over AMD’s Profitability: Analysts have voiced worries regarding AMD’s operating costs and profitability.
And Finally…
Why Asia’s Richest Man and BlackRock CEO Want Indians to Choose Stocks Over Gold: BlackRock’s Larry Fink and Mukesh Ambani of Reliance Industries encourage investing in the stock market instead of gold, amidst market volatility and weak performance of Indian stocks, which have seen a nearly 2% drop since the year’s start. Ambani noted that much of the gold savings in India are “unproductive,” adding that investing in the stock market allows for compounding growth.
