Stock Market Update

[BRIEFING.COM] The major averages have at least temporarily leveled from a sharp retreat this morning. 

Alphabet (GOOG 317.34, -16.00, -4.80%) delivered another impressive performance for 4Q25, yet the stock is trading sharply lower as investors grapple with the staggering price tag of the company's AI ambitions. While GOOG crushed 4Q25 estimates across revenue and earnings, its massive FY26 CapEx guidance has sent a shockwave through the market, overshadowing a quarter where Cloud and Search both showed accelerating momentum.

The company's Q4 results present a "good news is bad news" paradox. While the company proved its AI investments drive revenue growth—evidenced by the 48% Cloud surge and record Search usage signals—the cost to remain competitive is staggering. The AAPL partnership is a significant strategic win, but the market is currently fixated on near-term margin pressure from depreciation and rising infrastructure costs. The question isn't whether GOOG can lead in AI, but at what cost to the bottom line. GOOG is betting its $240 billion backlog will eventually outpace the massive infrastructure bill required to power the Gemini era.