GOOGL Preview: Sky High Capex Expectations "Point To Downside Risk"; Tesla Also On Deck

Alphabet reports earnings after the close, with investor expectations elevated after several quarters of strong AI-driven momentum. While the long-term bullish case remains intact, UBS warns that the stock increasingly looks vulnerable to any disappointment as many of the key positives around Gemini, Google Cloud and TPU demand are already well understood and largely reflected in expectations.

According to the JPM tech specialist, GOOGL needs to reassert itself atop the AI lab pecking order. That may be difficult: buyside bars for capex are very elevated ($325-375bn vs street $250bn), so watch for possible disappointment on a less than moonshot capex forecast.