New York, Feb 10, 2026, 05:03 EST — Premarket
- Alphabet shares showed little movement in early trading following a small rise in the previous session
- Google’s parent company issued $20 billion in bonds to finance increased investments in AI data centers and chips
- Traders are keeping an eye on funding costs and new U.S. macro data this week
Alphabet’s Class A shares dipped roughly 0.1% to $324.14 in premarket trading, slipping slightly after Monday’s 0.45% gain that closed at $324.32. (Public)
Alphabet’s early action follows its $20 billion sale in a seven-part investment-grade bond deal just a day earlier. This move adds to the surge of big tech borrowing as companies ramp up AI infrastructure. According to the Financial Times, Alphabet is also eyeing a debut sterling bond offering, which might feature a rare 100-year bond. (Reuters)
The bond deal comes amid debate about what the AI investment really delivers. J.P. Morgan analyst Doug Anmuth stuck with his “Overweight” rating and named Alphabet a “best idea,” arguing the spending will pay off through Search and Cloud. Still, the sheer scale of the outlay has made some investors uneasy. (Barron’s)
Alphabet put a figure on its spending last week. CEO Sundar Pichai said capital expenditures for 2026—capex, which covers investments in long-term assets like data centers and servers—are projected between $175 billion and $185 billion. At the end of 2025, the company held $126.8 billion in cash, cash equivalents, and marketable securities, and it repurchased $45.7 billion in stock that year. (SEC)
Equity investors are watching closely to see if Alphabet’s funding strategy begins to change. The company’s balance sheet can easily cover growth expenses, but taking on debt might suggest management is seeking more flexibility — or that cash flow alone is no longer enough to support rising costs.
Bond traders will be focused on the premium Alphabet paid to secure its longest-dated bonds. On the equity side, the takeaway is straightforward: rising rates can reduce the present value of future earnings, which is a critical factor for megacap tech stocks.
Setting aside the bond tape, Alphabet’s Waymo announced it’s now fully autonomous in Nashville, broadening its robotaxi reach as competition intensifies across the U.S. (Reuters)
There’s a catch, though. If AI demand slows or clients put off major cloud contracts, a capex plan this big could squeeze margins and cut into buybacks—a crucial support for large-cap tech in recent years.
Investors are also watching to see if Alphabet will issue more debt in Europe, and what that could mean for funding costs across the industry, especially as competitors ramp up their AI hardware investments.
The next major event on the calendar is the U.S. employment report, set for Wednesday, Feb. 11, at 8:30 a.m. ET. Then comes the consumer price index on Friday, Feb. 13. Both reports have the potential to shift Treasury yields and, in turn, influence Google stock. (Bls)
