Shares of Alphabet (NASDAQ:GOOG) rose approximately 3.2% to close on Wednesday, gaining as much as 5.9%, driven primarily by the outcome of the U.S. election where Democrats secured control of Congress and several key gubernatorial races. The article highlights that Alphabet has significantly increased its capital expenditures (capex), with plans for roughly $200 billion in spending in 2026 compared to $90 billion last year, alongside a reported negative free cash flow of $9 billion in the third quarter. Despite these financial metrics, the stock is trading at just 15 times earnings. A key bullish factor identified is the potential impact of new state-level regulations on data centers. With several states, including Texas and Georgia, considering moratoriums or stricter oversight on data center construction due to environmental concerns, analysts suggest this could hurt competition for new entrants while benefiting established hyperscalers like Google that already possess extensive infrastructure networks. The article concludes by noting that such regulatory headwinds for competitors would likely slow the industry's overall capex pace, potentially boosting Alphabet's future profits and cash flow. However, it also mentions that The Motley Fool's Stock Advisor team recently did not include Alphabet in their top 10 stock picks.