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Why is GGLL Down Today After Alphabet Earnings

The Direxion Daily GOOGL Bull 1.5X Shares (GGLL) closed down 14.47% to $45.59 on February 5, as Alphabet Inc.'s stock faced significant pressure following mixed Q4 results and concerns over its ambitious capital expenditure plans. Alphabet's shares tumbled nearly 8% intraday, driven by a revenue miss and a $75 billion capex plan for 2025, which exceeded Wall Street's expectations by $15 billion. Analysts have expressed concerns about the company's weaker-than-expected cloud growth and the substantial investment in AI infrastructure, leading to several price target reductions. Despite Alphabet's strong performance in Google Search and YouTube Ads, the market remains skeptical about the immediate returns on its AI investments. The announcement of a rival AI model by Chinese startup DeepSeek has further fueled concerns about the cost-effectiveness of American firms' AI spending.