Why this is trending right now
Alphabet shares dropped 10% on October 28, 2026, following an earnings report that failed to meet investor expectations regarding capital expenditure (capex) management. The company confirmed it would hold 2026 capex levels unchanged, while simultaneously projecting a significant increase in spending for 2027. This strategy triggered a sell-off, as market participants reacted to the lack of immediate cost-cutting measures.
The last 24 hours: a timeline
Early in the day on October 28, 2026, Alphabet released its latest earnings report. By midday, the stock had fallen 10% as analysts digested the company's capex guidance. Throughout the afternoon, Nasdaq-100 futures dipped in response to the broader tech sector volatility caused by the Alphabet sell-off. CNBC reported live updates throughout the session as the market adjusted to the news.
What could happen next
Investors will likely focus on Alphabet's ability to justify the projected 2027 capex increase through revenue growth in its AI and cloud divisions. Given the current market sensitivity to tech spending, Alphabet's future performance will depend on whether it can demonstrate that these investments will yield higher margins. Analysts are expected to revise their price targets based on the company's long-term infrastructure commitments.
SOURCES — THE RECORD
- Alphabet sinks 10% as it holds 2026 capex unchangedCNBC · cnbc.com
- Nasdaq-100 futures dip as Alphabet shares sell offCNBC · cnbc.com
- Thursday's stock stories: What’s likely to move the marketCNBC · cnbc.com
