**Alphabet and Amazon Elevate Capex Amid Market Concerns**
Alphabet Inc. (NASDAQ: GOOG, GOOGL) revealed plans to increase its capital expenditures (capex) to between $195 billion and $205 billion for 2026, up from an initial estimate of $180 billion to $190 billion. This announcement followed a strong Q2 earnings report, where Alphabet reported revenues of $119.79 billion, a 24% increase year-over-year. However, the stock fell 6% post-announcement, reflecting investor anxiety over extensive spending in AI infrastructure amidst concerns about profitability.
Amazon (NASDAQ: AMZN), which had already committed to $200 billion in capex for 2026, is expected to announce an increase during its earnings report on July 30. Amazon Web Services currently commands a 28% share of the global cloud market, significantly outpacing Alphabet’s Google Cloud. Analysts predict that as big tech continues to spend heavily on AI, market reactions may mirror Alphabet’s, indicating potential volatility for Amazon’s stock.
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