Alphabet Cuts Cloud Jobs, Shares Dip 1% as Third Point Buys 175,000 Shares
GOOG•Alphabet trimmed an unspecified number of cloud unit jobs as it reallocates spending toward AI, prompting a roughly 1% stock decline. Third Point LLC purchased 175,000 Alphabet shares in Q1 FY26 following the company’s $5.11 EPS report and $80 billion AI infrastructure funding plan.
1. Cloud Unit Layoffs
Alphabet cut a small, unspecified number of jobs in its cloud division, including some Threat Intelligence Group roles, to reallocate resources toward artificial intelligence initiatives. The company noted these targeted reductions are part of routine internal structure reviews designed to better align teams with evolving customer and industry demands.
2. Strong Q1 Earnings and $80B AI Plan
Alphabet reported $5.11 earnings per share for Q1 FY26 and unveiled plans to raise $80 billion for AI infrastructure investments over the next several years. This capital commitment underscores management’s strategy to deepen AI capabilities across cloud services and consumer products.
3. Third Point Accumulates Alphabet Shares
Hedge fund Third Point LLC acquired 175,000 Alphabet shares in Q1 FY26, signaling growing investor confidence in the company’s AI-driven growth trajectory. This stake increase follows bullish purchases from other major investors and contributes to robust retail sentiment, with the stock up 19% year-to-date.
