Alphabet Inc.'s recent mixed Q4 results have led to a notable decline in its stock price, despite an "Outperform" rating from Wedbush and an increased 12-month price target. While the company's operating income exceeded forecasts, revenue slightly missed expectations, and Google Cloud's growth decelerated more than anticipated. These factors have overshadowed the robust performance in Google Search and YouTube Ads, contributing to investor concerns. Additionally, Alphabet's ambitious $75 billion capex plan for 2025, aimed at bolstering AI and cloud infrastructure, has not been enough to offset the immediate market reaction to the earnings report.
The Direxion Daily GOOGL Bull 1.5X Shares (GGLL) experienced a significant drop, falling 13.6% to $46.05 as of 7:00 AM on Wednesday, February 5.