The situation creates an opportunity to buy the dip. Here’s a look into why Alphabet and Symbotic stocks are worth investing in.<\/p>\n
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Image source: Getty Images. <\/p>\n
Alphabet shares declined from the 52-week high of $349 reached on Feb. 3 after revealing that 2026 capital expenditures would total between $175 billion to $185 billion, a substantial increase over the $91.4 billion spent in 2025.<\/p>\n
But that expenditure makes sense given the demand for Alphabet’s AI technology. Its Google Cloud service saw fourth-quarter sales soar a whopping 48% year over year to $17.7 billion. The company needs to build out more computing capacity to meet customer demand, hence the big capex increase.<\/p>\n
In fact, the market for AI infrastructure is booming, with historically low levels of vacancies seen at data centers housing AI tech. This suggests the industry is not in a bubble, validating Alphabet’s capex plans.<\/p>\n
AI is also powering growth in the company’s Google search engine. Alphabet CEO Sundar Pichai stated: “Search saw more usage in Q4 than ever before.” This helped Google’s revenue reach $63.1 billion in Q4, up from 2024’s $54 billion. Since Google accounted for 55% of Alphabet’s $113.8 billion in Q4 revenue, its rising usage bodes well for the company’s future success<\/a>.<\/p>\n Symbotic supplies robots managed by artificial intelligence to warehouses. Its stock has fallen substantially from the 52-week high of $87.88 reached last November. Yet the company is doing well.<\/p>\n In its fiscal first quarter ended Dec. 27, Symbotic’s sales hit $630 million, a strong 29% year-over-year increase. It anticipates ongoing revenue growth in the fiscal second quarter, forecasting sales between $650 million to $670 million, up from the previous year’s $550 million.<\/p>\n Symbotic’s major customer is Walmart, which is also an investor in the company. This gives a level of certainty to Symbotic’s income stream, since switching costs would be high for Walmart. The retailer can’t easily replace Symbotic’s robot workers and AI platform without affecting its supply chain operations. Symbotic plans to get its system into all 42 of Walmart’s regional distribution centers by 2029.<\/p>\n The company also boasts a strong balance sheet. It exited fiscal Q1 with total assets of $3 billion, including $1.8 billion in cash and equivalents. Total liabilities were $2 billion, but nearly $1.5 billion of that was deferred revenue<\/a>, which are up-front customer payments that can be recognized as revenue once services are rendered.<\/p>\n Moreover, Symbotic is profitable. Its Q1 net income attributable to common stockholders of $2.6 million is a significant improvement over the prior year’s net loss of $3.2 million.<\/p>\n Symbotic continues to improve its AI-powered warehouse automation platform to attract customers, including its proprietary storage space optimization. The company is progressing nicely, positioning it for years of growth ahead.<\/p>\n Before you buy stock in Alphabet, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Alphabet wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $519,015!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,086,211!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 941% \u2014 a market-crushing outperformance compared to 194% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of March 1, 2026. <\/p>\n Robert Izquierdo<\/a> has positions in Alphabet, Symbotic, and Walmart. The Motley Fool has positions in and recommends Alphabet, Symbotic, and Walmart. The Motley Fool has a disclosure policy<\/a>.<\/p>\n