Alphabet's fourth-quarter earnings day is here, with numbers expected to be released after the markets close Tuesday. This will be followed by an earnings call at roughly 4:30 p.m. ET. The stock has been riding high over the past month as investors grew bullish over Google's AI investment.

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.

Key Takeaways Google parent Alphabet said it plans to spend $75 billion in capital expenditures this year, as it expands capacity to meet demand for AI.CFO Anat Ashkenazi said a majority of that spending would go toward technical infrastructure,

Alphabet will face investor scrutiny over its massive spending on AI when it reports earnings on Tuesday, as revenue growth at the Google parent likely slowed in the holiday quarter due to a slowdown in its advertising and cloud businesses.

Alphabet's most recent earnings report indicates that its cloud business is beginning to show signs of slowing amidst growing competition in the AI sector. Nevertheless, the company is continuing to increase its capex investments.

Alphabet said on Tuesday it will spend $75 billion on its AI buildout this year, 29% more than Wall Street expected, while posting cloud revenue that missed analysts' target. The tech giant's shares were down 9% in extended trading.

Excluding traffic acquisition costs, that figure was $81.6bn, missing Wall Street estimates in a Bloomberg poll of $82.8bn. Net income rose 28 per cent to $26.5bn. Alphabet shares dropped more than 6 per cent in after-hours trading.