Alphabet (NASDAQ:GOOGL) closed at $331.25, down 0.54%, following news of plans to increase 2026 AI capital expenditures to $180 billion. Trading volume surged to 87.1 million shares, 136% above average. Alphabet IPO’d in 2004 and has grown 13,097% since.

The S&P 500 dropped 1.20% to 6,800, while the Nasdaq Composite fell 1.59% to 22,541, with tech stocks under pressure. Meta Platforms closed at $670.21 (+0.18%) and Amazon at $222.69 (−4.42%).

Alphabet’s earnings report led to a 4% drop, then a rally back to breakeven. Sales and EPS grew by 18% and 31% in Q4, surpassing expectations. Google Search and YouTube saw 17% and 9% sales growth, while the cloud backlog surged 55% sequentially.

Alphabet announced plans to spend $180 billion on AI-related capex, impacting market reaction. However, with successful products like Gemini Enterprise and app home, market sentiment was positive. Investors are advised to consider other top stocks identified by The Motley Fool.

Read more at Nasdaq: Stock Market Today, Feb. 5: Alphabet Rallies Back to Even After Unveiling 2026 AI Spending Plan Near $185 Billion