Michael Burry Flags Wording, Methodology Updates In Google Parent Alphabet’s Fresh Filing

• Burry noted that Alphabet’s filing now includes “historical asset performance” and “expected technology developments,” with the latter representing a more formal expression.
• Venture capital firm Stonebridge Capital, in response to Burry’s note, said the change looked like Alphabet was getting ahead of its AI hardware obsolescence. 
• In its latest fourth-quarter (Q4) release, Alphabet provided a capex outlook between $175 billion and $185 billion in 2026, much higher than street estimates of $119.5 billion.

‘The Big Short’ investor Michael Burry pointed out that Alphabet Inc. (GOOG, GOOGL) has changed the phrasing and methodology in its latest annual filing with the U.S. Securities and Exchange Commission (SEC).

In a Substack note from Thursday, Burry said that Alphabet has updated its 10-K 2025, released earlier in the day, with different wording in both its risk factors section and its property and equipment “useful lives” description.

Burry noted that Alphabet’s filing now includes “historical asset performance” and “expected technology developments,” with the latter representing a formal expression “with a different proactive connotation.”

What Does This Mean?

Alphabet’s revised phrasing in the filing is to notify investors of changes in how it estimates the useful lives of property and equipment, and expectations about future technological developments.

The change formalizes how the company will determine depreciation of its assets, likely related to its artificial intelligence infrastructure spend.

“Sounds like they're getting ahead of AI hardware obsolescence. Interesting they're building that flexibility now,” said venture capital firm Stonebridge Capital, in response to Burry’s note.

Another user, Auctus, explained that the change in methodology and phrasing indicates the company is altering its accounting estimates to change the impact on its bottom line.

“By shifting the methodology for asset useful lives to a more 'proactive' and 'expected' framework, they’re effectively lowering depreciation expenses. It’s a classic move to pad earnings and offset the massive Capex drag from their AI infrastructure spend,” Auctus said in a response to the note.

Capex Increase

In its latest fourth-quarter (Q4) release, Alphabet provided a capex outlook of $175 billion to $185 billion for 2026, well above street estimates of $119.5 billion, and almost double its 2025 spend.

Alphabet CEO Sundar Pichai justified the increase by saying that the company’s AI investments and infrastructure have been driving revenue and growth across the board.

The company also noted that the hike in its technical infrastructure investments will impact its bottom line via higher depreciation expenses and related data center costs. Alphabet said it expects its 2026 depreciation growth rate to accelerate in Q1 26 and significantly increase for the full year ahead.

Alphabet reported Q4 revenue of $113.8 billion, an 18% increase from the same period last year, and ahead of analysts’ estimates of $111.5 billion. The company reported diluted earnings per share of $2.82 per share, ahead of the street consensus of $2.64 per share.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around GOOG shares was in the ‘extremely bullish’ territory over the past 24 hours. Meanwhile, message volumes jumped from ‘high’ to ‘extremely high’ levels in the same period.

Shares of GOOG have gained over 66% in the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also Read: Google Parent Alphabet Earnings Beat Fuels Analyst Price Target Hikes – But Capex Jitters Linger

Share

·

Add us on