Woofun AI reports that financial expert Damir Tokic suggests Alphabet may become the first major technology firm to reduce artificial intelligence capital expenditures. The company is scheduled to release its second-quarter 2026 earnings results on July 22nd, with investors closely monitoring AI infrastructure spending, Google Cloud growth, and free cash flow metrics.

Tokic argues that despite rapid expansion in data centers and servers, rising costs are straining cash flows. He notes that slowing growth in backlogged orders and potential long-term impacts on search advertising from new AI products could force a reassessment of investment plans if returns remain insufficient, potentially pressuring the stock price.