Alphabet raised its capital expenditure forecast for 2026 to $205 billion, causing its stock to tumble Thursday. JPMorgan analysts and investor Steve Eisman warn that any reduction in spending by major cloud providers would trigger a market decline. Wall Street expects around $260 billion in capex from Google in 2027, and a collapse in these investments would signal a leveling off of demand for computing capacity. Alphabet raised $80 billion in equity in June, forcing investors to revise their analysis of expected returns on investment.
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