Alphabet Stock Jumps 5% as Midterm Election Rally Lifts Google Shares

Google plans to invest $15 billion in Malaysia in 2027 and 2028 to expand its data centers, according to AFP. The expansion is tied to commitments on power, water, and skills as authorities review the plans.

Alphabet's stock rose 3.2% on Wednesday after Democrats won control in key states, potentially leading to stricter data center regulations. Texas, Ohio, Georgia, and Arizona are major hubs for data centers. Alphabet's cloud and AI services grew, but investors were concerned about negative free cash flow and high capital expenditures. Analysts suggest regulations could benefit Alphabet by slowing competition and reducing capex, making the stock attractive at 15 times earnings.

Alphabet, Amazon, and Microsoft shares rose 4.1%, 7.1%, and 7% respectively, after Democrats won control of Congress, potentially leading to stricter data center regulations. Investors expect these tech giants to benefit from reduced competition and lower capital expenditures, boosting profits and cash flow. Amazon and Alphabet maintained high capex forecasts, while Microsoft reduced its guidance.

Alphabet (GOOGL) plans a $15 billion investment in Malaysia over two years to expand Google's data centers and digital skills training. The project includes new campuses in Selangor and Negeri Sembilan, with completion dates in 2027 and 2028. The investment aims to boost Malaysia's computing capacity and infrastructure, supporting Alphabet's cloud and AI services growth.

US tech giants' shares surged on Wednesday after Democrats' midterm election sweep, with investors anticipating potential curbs on data-center construction. Amazon, Meta, Alphabet, Microsoft, and Apple gained between 2% and 7.4%, adding over $750 billion in combined market value. Democrats' opposition to data centers may slow construction, benefiting existing tech giants. Smaller players like Applied Digital and Iren saw declines on concerns about their expansion plans.

Google announced that schools using its K-12 software will lose access to Search unless they opt in to AI tools like Gemini. Critics, including Senator Bernie Sanders and Lina Khan, condemned the move as anticompetitive. Google defends the change as a response to educator feedback, offering more control and a 'Guided Learning' tool.