Alphabet was falling on Wednesday as it shocked the market with its heavy spending plan. Wall Street analysts say it can still show a return on investment.

Google's parent company and other tech stocks are weighing on a mixed Wall Street Wednesday as the focus swings back toward how much profit businesses are making. The S&P 500 rose 0.1% in afternoon trading.

This is a significant increase, and it shows that Alphabet is throwing the kitchen sink at its A.I. plans,” said Kathleen Brooks, research director at XTB, in an analyst note. What worries investors more is that Alphabet is spending money more quickly than making it.

The Chinese government’s move to open an antitrust probe into Google is the latest development in a long and entangled relationship that goes back to the early 2000s

The quarter before, for instance, Alphabet beat Wall Street’s EPS estimates by nearly 15 percent, as the chart below from Public.com illustrates.  Notably, Alphabet also announced $75 billion in capital expenditures for 2025 to continue investing in artificial intelligence.

China's antitrust investigation into Google, which does not offer most of its consumer-facing services including search and email in the country, seems to make little sense on the surface, but analysts said the move could be seen as a warning shot to the US and a threat to the Android operating system.