$Alphabet(GOOGL.US)The most significant problem for Alphabet investors is spending. Alphabet revised up its full-year 2026 capital expenditure outlook to $195 billion-$205 billion, from the previous range of $180 billion-$190 billion. The company has been investing heavily in its data centers and custom chips as AI demand grows. Q2 capex came at $44.9B, adding to the negative free cash flow of about $5.9B in the quarter. The spending rate is becoming a worry for investors as the cost of depreciation and interest expenses may be eroding margins amid continued demand for AI infrastructure.

Alphabet also made a big financing move in early August, as it closed a $22.93 billion senior unsecured bond issue with a range of maturities from 2028 to 2066. The transaction follows a $18 billion equity offering earlier this year, and is paired with a $40 billion ATM share program. The capex is also at a record high, and the decision to pursue more leverage and possible dilution of shareholders has led institutional investors to consider the longer-term opportunity Alphabet believes exists in the field of AI infrastructure. The abovementioned will likely continue to be the biggest bearish concern for Alphabet as their TPUs & Cloud growth tries to sustain the bullish side of the situation. @Captain's Treasure