Alphabet Earnings Pressure GOOG Stock Amid DOJ Antitrust Appeal Risks
Alphabet Inc., the parent company of Google, is currently experiencing significant stock fluctuation amid growing investor concerns. As of February 4, 2026, its non-voting Class C shares (GOOG.O) fell by 1.8%, trading at $334.62 early Wednesday morning after reaching $345.74 earlier in the day. This decline comes as the company prepares to announce its quarterly earnings, prompting analysts to reassess the impact of artificial intelligence (AI) on tech sectors.
Market Reactions and Earnings Preview
Investors are closely monitoring Alphabet’s upcoming quarterly earnings report scheduled for Wednesday at 4:30 p.m. Eastern Time. Analysts predict earnings per share to reach approximately $2.63, with revenue expected around $111.3 billion. A key focus will be on the company’s remarks regarding AI deployment and capital expenditures, especially after a significant year of growth and expansion.
Impact of AI Surges
Recent developments in AI are reshaping market dynamics. Following Anthropic’s introduction of plug-ins for its Claude Cowork agent, a wave of software and data-analytics companies faced declines. J.P. Morgan’s Toby Ogg expressed concerns that the sector is being judged prematurely. Art Hogan, chief market strategist at B. Riley Wealth, noted a widespread impact across software firms.
Alphabet’s Strategic Moves
- Google Cloud signed a five-year agreement with Liberty Global to implement its Gemini AI models across European markets.
- Tara Brady, Google Cloud’s president for EMEA, emphasized the goal of reducing complexity for clients.
Antitrust Concerns
The shadow of regulatory scrutiny looms over Alphabet. Recent court filings reveal that the U.S. government is set to appeal a judge’s ruling that acknowledged Google’s monopoly but stopped short of imposing severe penalties, such as the divestiture of Chrome or altering its default search agreement with Apple.
Market Trends and Forecast
U.S. stock indices have faced notable declines, reflecting ongoing apprehensions among investors. The S&P 500 software and services index has dropped over 13% in the past week, marking its steepest fall since March 2020. Sean Clark, a chief investment officer, remarked on the market’s dependence on robust earnings to sustain valuations.
As Alphabet’s earnings call approaches, traders remain wary of potential shifts in cloud revenue and data center spending, which could deepen if ad demand dwindles or if capital expenditures exceed expectations. The forthcoming earnings report holds the potential to significantly influence the market’s trajectory in 2026.
