NEW YORK, February 16, 2026, 15:48 EST — Market closed
- Alphabet Class C (GOOG) slipped 1.1% to close at $306.02 in the final session ahead of Monday’s U.S. market holiday
- Investors continue to wrestle with a retreat in megacap tech, with concerns swirling about the pace at which AI investments might deliver returns.
- Attention shifts to Tuesday’s market reopening, with a packed U.S. data calendar on deck—potentially shaking up risk appetite.
Alphabet Inc’s Class C shares (GOOG) last traded at $306.02, off 1.1%. U.S. markets are shut for Presidents Day; trading picks up again Tuesday. Shares currently rest about 12% off the Feb. 3 peak of $350.15. 1
Investors have been scaling back positions in top tech stocks, unnerved by the growing price tag of the artificial intelligence push—and how soon those investments start to pay off. According to a Reuters analysis published Monday, Alphabet and other major players have lost ground in market value this year as traders grow skeptical about the returns from rising AI spending. 2
“Investors right now are not forgiving about large investments without clear signal on return on invested capital,” Morgan Stanley analysts said in a note, according to Reuters. That pressure is hitting companies still funneling money into data centers. 3
Alphabet isn’t easing up on spending, setting a 2026 capex target between $175 billion and $185 billion—a jump, with dollars headed for data centers and AI-supporting chips. The ramp comes after Google Cloud posted a big revenue gain in the December quarter. Capex, or capital expenditures, hits cash flow up front and goes into long-lived assets. 4
Debt markets have become a bigger piece of the puzzle, too. Alphabet tapped them with a rare 100-year bond, part of a sweeping $31.51 billion global raise just this month. Borrowing is running hot across the sector as companies build out AI infrastructure. “You have an extraordinary time period … with the change in technology,” said Jason Granet, chief investment officer at BNY, in comments to Reuters. 5
No cash trading Monday, so eyes are on the U.S. numbers lined up for when the market’s back open. The New York Fed’s calendar points to advance retail sales and the Empire State manufacturing survey Tuesday. Later in the week, first prints on U.S. GDP, personal income, and the PCE deflator are all due. 6
Nvidia is set to take center stage in the AI trade, with its quarterly earnings call scheduled for Feb. 25. The chip giant’s updates tend to send waves across companies exposed to AI demand and data-center budgets. 7
Another wildcard: the live mic factor. Alphabet chief Sundar Pichai is slated to join other execs at the AI Impact Summit in New Delhi from Feb. 16-20, an event likely to churn out headlines on policy and spending moves. 8
GOOG’s immediate headache? Costs. If building out AI eats up cash quicker than revenues or margins can keep pace, investors could turn cautious—demand or no demand.
Regulation lurks as a wild card. Tweaks to rules for search, ad auctions, or distribution deals can flip the earnings outlook fast — traders rarely wait for the fine print before moving.
GOOG, Alphabet’s Class C stock, doesn’t come with voting rights. Class A shares (GOOGL), on the other hand, do allow shareholders to vote, though both tickers tend to trade in tandem since they represent the same company.
Tuesday’s reopening is up next. Traders are set to parse the first round of U.S. data, all while the overhang on Big Tech lingers: just where’s the line on AI spending?
