Braze stock fell 15% this week as part of a broader software sector selloff triggered by major tech companies announcing massive increases in AI infrastructure spending. Alphabet raised its 2026 capex guidance to $195-205 billion and signaled substantial further increases in 2027, causing investors to worry that IT budgets will shift away from software implementations toward AI investments.
Axe note: Braze shares dropped as tech giants ramp up AI infrastructure spending, shifting IT budgets away from traditional software.