Google June Shares Fall 11.2% as Capex Forecast Rises by $5 Billion
GOOG•Alphabet shares dropped 11.2% in June, marking their worst monthly performance since February 2025 as investors rotated into semiconductors. The company raised its annual capital spending forecast by $5 billion to $180–190 billion and unveiled an $80 billion share issuance, with Berkshire Hathaway committing $10 billion.
1. June Performance Decline
Alphabet shares slid 11.2% in June, underperforming the tech-heavy Invesco QQQ Trust, which fell 4.2%. This marks the worst monthly drop since February 2025 as investors shifted funds into semiconductor names and sold off Big Tech equities.
2. Capital Expenditure Increase
In April, Alphabet raised its 2026 capital spending forecast by $5 billion to a range of $180–190 billion, earmarking the increase for AI development, cloud capacity expansion and in-house chip projects, heightening concerns over cash burn.
3. $80 Billion Share Issuance Plan
The company announced plans to issue $80 billion of new shares, with Berkshire Hathaway committing to purchase $10 billion. The move aims to bolster the balance sheet and fund ongoing R&D and infrastructure investments.
4. Analyst and Retail Sentiment
Of 64 analysts covering Alphabet, 57 rate it a 'Buy,' with an average price target implying 28% upside. On retail platforms, sentiment shifted to neutral and message volume plunged 64% over the past 90 days, signaling waning trader interest.
