Why Alphabet Stock Popped Today

Alphabet stock jumped 5.1% after Morgan Stanley reassured investors about the company's AI spending plans. Despite reporting strong earnings that beat expectations, Alphabet's announcement of doubling AI capex to $195-205 billion initially spooked investors. Morgan Stanley noted that strong operating cash flow and various financing strategies allow Alphabet to maintain $53.3 billion in positive free cash flow over the past 12 months, easing concerns about the massive investment.