Despite exceptional financial metrics including 297.9% year-over-year net income growth and massive cash reserves, investor concerns about capex trajectory and free cash flow deterioration are driving stock price declines

"Revenue and profit beat expectations. Margins were solid... But management announced sharply higher capex projections for 2026, now estimated to land around $200 billion. Free cash flow fell negative for the first time ever since Alphabet has been a public company. The stock sold off."

"Nothing to complain about, right? Except, on July 22, 2026, the stock price at the end of the trading day was $341.91. Then came the earnings announcement and shares dropped by the end of Thursday, July 24, to $318.34, a 6.9% fall."