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News
Thursday, February 05, 2026
What’s happening: Shares of Google parent Alphabet edged lower in after-hours trading on Wednesday following the release of fourth-quarter results.
What happened: The company reported better-than-expected sales and earnings for the latest quarter.
Alphabet announced plans to almost double its capital expenditure this year, exerting pressure on the stock.
How were the results: The Mountain View, California-based company reported double-digit sales growth for the fourth quarter.
Why it matters: Alphabet’s annual revenues crossed $400 billion for the first time in the company’s history. YouTube revenues climbed past the $60 billion mark in 2025.
Google’s advertising segment revenue surged to $82.28 billion in the fourth quarter, from $72.46 billion in the year-ago quarter. Google Cloud revenue climbed to $17.66 billion, from $11.96 billion last year. Revenues from Google Subscriptions, Platforms, and Devices rose to $13.58 billion, from $11.63 billion in the year-earlier quarter.
CEO Sundar Pichai said that the company has more than 325 million paid subscriptions for its consumer services, with YouTube Premium and Google One being among the top performers.
Alphabet and its main rivals are looking to spend over $500 billion on AI in 2026. Facebook parent Meta Platform said last week that it plans to increase its AI capital investment by 73% this year. Microsoft also disclosed record quarterly capex on this technology.
This aggressive increase in expenditure comes at a time when there is heightened investor concern around the RoI (returns from investments) from AI.
Alphabet is looking to increase its capex to between $175 billion and $185 billion in 2026, compared to $91.45 billion last year. This surpassed market estimates of around $115.26 billion.
How shares responded: Alphabet’s shares fell 0.4% to $331.75 in extended trading hours following the release of quarterly results. The stock has jumped more than 70% over the past six months.
What to watch: Investors will continue monitoring the company’s AI spend and the progress made on the key areas of datacentre infrastructure, AI hardware (TPUs and GPUs), cloud computing expansion and model development (Gemini/DeepMind).
Context: The EUR/USD forex pair fell this morning as investors digested the latest economic reports.
Details: Data released on Wednesday showed that the Eurozone’s inflation rate eased to 1.7% year-over-year in January. Although this was in-line with market estimates, it represented the lowest inflation rate since September 2024. The annual core inflation rate also slowed to 2.2% in January from 2.3% in the previous month.
Industrial producer prices fell 0.3% in December, compared to a 0.7% gain in November.
The HCOB Eurozone composite PMI slipped to 51.3 in January from 51.5 in the previous month. While the figure came in below market estimates of 51.8, it was the 13th consecutive month of private output growth in the region.
Strength in the US dollar also weighed on the EUR/USD forex pair this morning. The US dollar index, which measures the greenback’s performance versus a basket of major peers, rose around 0.2% to 97.80.
The EUR/USD pair fell 0.2% to 1.1786 this morning, while the EUR/GBP forex pair gained almost 0.1% to 0.8653.
What to watch: Investors await the European Central Bank’s interest rate decision (1715 UAE Time) today. The ECB is widely expected to keep rates unchanged, with policymakers weighing the impact of the rising US dollar and low-priced imports from China on the bloc’s inflation outlook.
Data on Eurozone’s HCOB construction PMI (1230 UAE Time) and retail sales (1400 UAE Time) will also remain in focus. Retail sales in the Eurozone, which grew 0.2% in November, are expected to contract 0.2% in December. Analysts expect the HCOB construction PMI to rise to 48 in January from 47.4 in the previous month.
Other Markets: US trading indices closed mixed on Wednesday, with the S&P 500 and Nasdaq 100 down by 0.51% and 1.77%, respectively, and the Dow Jones index up by 0.53%.
EU ambassadors approved details of a €90 billion loan for helping Ukraine to meet most of its financial needs in 2026-2027. The news sent the USD/RUB pair higher in forex trading this morning.
Canada’s S&P Global services PMI declined to 45.8 in January from previous reading of 46.5. Services activity recording a third straight monthly decline lent support to the USD/CAD forex pair.
The National Bank of Poland held its main interest rate at 4% at its latest meeting, which sent the USD/PLN pair higher in forex trading this morning.
Brazil’s S&P Global services PMI declined to 51.3 in January from 53.7 in the previous month, which lent support to the USD/BRL forex pair.
Australia’s goods trade surplus rose to A$3.37 billion in December from A$2.60 billion in the previous month. However, the AUD/USD pair slipped in forex trading this morning.
France’s HCOB construction PMI (1230 UAE Time), Germany’s HCOB construction PMI (1230 UAE Time), Italy’s HCOB construction PMI (1230 UAE Time) and retail sales (1300 UAE Time), UK’s new car sales (1300 UAE Time), S&P Global construction PMI (1330 UAE Time) and BoE interest rate decision (1600 UAE Time), Turkey’s foreign exchange reserves (1530 UAE Time), Mexico’s gross fixed investment (1600 UAE Time) and interest rate decision (2300 UAE Time), US initial jobless claims (1730 UAE Time), continuing jobless claims (1730 UAE Time), JOLTs job openings (1900 UAE Time) and EIA natural gas stocks change (1930 UAE Time) as well as Brazil’s balance of trade (2200 UAE Time).
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