Alphabet to set tone for megacap earnings as headwinds swirl

(Bloomberg / Ryan Vlastelica) — Alphabet Inc. will set the tone for tech earnings this season, and investors are worried it may be a bum note.

The Google parent continues to struggle against a number of headwinds, including a recent loss in its antitrust battles and concerns about the competitive dynamics around artificial intelligence, an area where it continues to spend billions of dollars. However, there is also optimism the worst may be over, especially as it trades at a cheap multiple...