Alphabet shares fell 11.2% in June, the steepest monthly decline since February 2025, as investors weighed high capital expenditure. The company raised its 2026 capex forecast by $5 billion to $180–190 billion and announced an $80 billion share issuance, including $10 billion from Berkshire Hathaway, while analysts see a 28% upside.
Alphabet shares declined 11.2% in June, marking the steepest monthly drop since February 2025. This underperformance placed Alphabet in the middle of the Magnificent Seven group but slightly below the broader technology sector’s June performance.
In April, Alphabet raised its annual capex forecast by $5 billion to a range of $180–190 billion, targeting AI development, cloud capacity expansion and chip production. The elevated spending has raised investor concerns about margins and free cash flow.
Alphabet announced an $80 billion equity offering, with Berkshire Hathaway committing $10 billion. The infusion aims to support ongoing R&D and infrastructure investments but may dilute existing shareholders.
Of 64 analysts, 57 maintain buy ratings on Alphabet, with an average price target of $337.37 implying a 28% upside. Retail message volume has fallen 64% over 90 days and Stocktwits sentiment shifted to neutral, indicating waning retail interest.
