Alphabet pauses buybacks for data centers 1st time since 2017
Alphabet (Google's parent company) is shaking things up: it is putting billions into new data centers and tech instead of buying back its own stock.
This is the first time since 2017 that Alphabet has hit pause on stock repurchases, and the move has some investors feeling uneasy just as the company gets ready to report earnings.
Alphabet's $56B spending spurs investor concern
So what is driving this change?
Alphabet spent $56 billion in the first half of 2026 on acquisitions and nonmarketable securities, the latter being primarily Anthropic shares, aiming to supercharge its AI capabilities and Google Cloud.
Third-quarter cloud revenue is expected to jump 90% to $29 billion, but all this growth comes at a cost: capital spending could hit $200 billion in 2026, with $77 billion in new debt fueling these ambitions.
With future commitments of $900 billion, Wall Street is getting nervous.