Key Takeaways Alphabet shares fell sharply Wednesday as investors responded to the Google parent's weaker-than-expected revenue numbers and big AI spending plans. The stock broke out from an ascending channel late last month and picked up momentum ahead of the earnings report before today's abrupt reversal.

Alphabet reports fourth-quarter earnings after Tuesday's closing bell. Investors will be focused on cloud momentum and AI traction, with shares of the Google and YouTube parent company holding fast near the record levels achieved last week.

Cloud revenue in the quarter of $12 billion—a 30% increase from last year—just misses analysts’ estimates of $12.2 billion.