GOOG Dips 0.5% as Alphabet Awaits Q1 Earnings Amid AI Spending and Iran Relief Rally |
NEW YORK — Alphabet Inc. Class C shares edged lower in early trading Wednesday, dipping 0.47 percent to $329.01 as investors paused ahead of the company's first-quarter earnings later this month while weighing heavy artificial intelligence investments against broader market optimism over potential de-escalation in the Middle East.
At 9:41 a.m. EDT, GOOG had fallen $1.57 from Tuesday's close. The modest decline contrasted with gains in the broader Dow Jones Industrial Average, which rose on hopes that President Donald Trump's comments signaling the Iran conflict is "very close to over" could ease energy price pressures and support global advertising spending.
Alphabet, parent of Google, has been navigating a complex environment. Strong momentum in Google Cloud and Gemini AI advancements have driven optimism, yet concerns over soaring capital expenditures — projected between $175 billion and $185 billion for 2026 — continue to pressure near-term margins and free cash flow.
Alphabet is scheduled to report first-quarter 2026 results after the market close on April 29. Analysts expect revenue around $106-107 billion and earnings per share near $2.60, building on the robust Q4 2025 performance that saw revenue hit $113.8 billion and EPS reach $2.82.
Google Cloud remains a standout, with recent quarters showing accelerating growth fueled by AI infrastructure demand from hyperscalers. The segment's backlog has swelled, reflecting strong enterprise adoption of........