Google parent Alphabet shares are down premarket after its earnings beat. Here's what's happening

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Alphabet’s

shares were down in premarket trading on Tuesday after the company beat Wall Street’s expectations on earnings and revenue, with AI spending projected to increase hugely this year.

The Google parent shed 2.6% in premarket as of 6:09 a.m. ET, after closing nearly 2% lower on Wednesday. After the bell, Alphabet reported $113.83 billion in revenue in the fourth quarter, above the estimated $111.43 billion from analysts polled by LSEG.

Its Google Cloud division earned $17.66 billion in revenue versus a forecast of $16.18 billion, according to Street Account. YouTube Advertising earned $11.38 billion in revenue versus the estimated $11.84 billion.