NEW YORK, February 16, 2026, 15:48 EST — Market closed
- Alphabet Class C (GOOG) last traded at $306.02, down about 1.1% in the last session before Monday’s U.S. market holiday
- Investors are still digesting a pullback in megacap tech tied to worries over how fast AI spending pays back
- Focus turns to Tuesday’s reopen and a busy U.S. data calendar that can reset risk appetite
Alphabet Inc’s Class C shares (GOOG) were last at $306.02, down about 1.1%, with U.S. stock markets closed on Monday for the Presidents Day holiday and trading set to resume on Tuesday. The stock sits roughly 12% below its Feb. 3 high of $350.15. (TradingView)
The lull comes as investors keep trimming exposure to the biggest tech names, with mounting unease over the size of the artificial intelligence buildout and when it shows up in profits. A Reuters analysis on Monday showed Alphabet and other megacaps have shed market value this year as traders question the payoff from swelling AI bills. (Reuters)
“Investors right now are not forgiving about large investments without clear signal on return on invested capital,” Morgan Stanley analysts wrote in a recent note cited by Reuters. That scrutiny has landed hard on firms that need to keep pouring cash into data centers. (Reuters)
Alphabet has fed that debate with its own spending outlook. The company forecast 2026 capital expenditures of $175 billion to $185 billion, a sharp step-up aimed at data centers and chips that support its AI push, after reporting a surge in Google Cloud revenue growth in the December quarter. Capital expenditures, or capex, is money spent on long-lived assets and it tends to hit cash flow first. (Reuters)
It has also leaned more heavily on debt markets. Alphabet sold a rare 100-year bond as part of a $31.51 billion global fundraising this month, as borrowing across the sector climbs alongside AI infrastructure plans. “You have an extraordinary time period … with the change in technology,” Jason Granet, chief investment officer at BNY, told Reuters. (Reuters)
With no cash session on Monday, attention shifts quickly to the U.S. data flow once markets reopen. The New York Fed’s calendar flags advance retail sales and the Empire State manufacturing survey on Tuesday, followed by a first-release read on U.S. GDP and personal income and the PCE deflator later in the week. (Federal Reserve Bank of New York)
In the AI trade, Nvidia is a looming catalyst. The chipmaker said it will hold its quarterly results call on Feb. 25, and its commentary often ripples through companies tied to AI demand and data-center spending. (NVIDIA Newsroom)
There’s also a live microphone risk. Alphabet CEO Sundar Pichai is expected to be among executives attending an AI Impact Summit in New Delhi running Feb. 16-20, a backdrop that could add headline noise around policy and spending priorities. (Barron’s)
But the near-term risk for GOOG is basic: costs. If AI infrastructure spending rises faster than revenue and margins, investors may stay defensive even if demand holds up.
Regulation is another swing factor in the background. Any shift in the rules around search, advertising auctions, or distribution deals can change the earnings picture quickly — and traders tend to react before the legal details settle.
Alphabet’s Class C stock trades under GOOG and carries no voting rights. Its Class A shares (GOOGL) do vote, but the two usually move in step because they track the same business.
For now, the next test is Tuesday’s reopen. Traders will weigh the first batch of U.S. data against the same question hanging over Big Tech: how much AI spending is too much.
