The cyclone peaked in strength as a Category 1 hurricane on the Saffir–Simpson scale (SSHWS), with maximum sustained winds of 85 mph (140 km/h) and a central pressure of 981 mbar (hPa; 28.97 inHg).

By that time, the storm was losing its tropical characteristics; it fully transitioned back into a non-tropical cyclone several hours after moving away from the Azores.

[1][3] This system proceeded northeast toward Bermuda, where unfavorable atmospheric conditions such as strong wind shear, low sea surface temperatures, and dry air initially inhibited tropical or subtropical cyclone formation.

[8] Once separated from the jet stream, the cyclone turned sharply to the south-southeast in response to a mid-latitude trough over the central Atlantic,[1][9] entering a region with warmer waters of 2.7 °F (1.5 °C) above average for January.

[1][nb 2] All these factors indicated the storm's transition into a subtropical cyclone by 18:00 UTC on January 12, at which point it was situated 1,150 mi (1,850 km) west-southwest of the Canary Islands and received the name Alex from the National Hurricane Center.

The hurricane achieved its peak intensity as a tropical cyclone with winds of 85 mph (140 km/h) and a minimum barometric pressure of 981 mbar (hPa; 28.97 inHg) soon thereafter, classifying as a Category 1 on the Saffir–Simpson scale.

[1] As Alex moved north toward the Azores, decreasing sea surface temperatures and increasing wind shear caused the cyclone to weaken through January 14 and 15.

[22] Becoming increasingly disorganized due to shear,[23] Alex weakened to a tropical storm before making landfall over Terceira Island at 13:15 UTC with winds of 65 mph (100 km/h).

[1] Less than five hours later, the system completed its transition into an extratropical cyclone, featuring a more elongated circulation, an expanding radius of maximum winds, and frontal boundaries.

[30] Anticipating strong winds and heavy rain, homeowners stacked sandbags to protect their properties from flooding and boarded up doors and windows.

[30] Overall, the storm's effects were milder than initially feared,[31] possibly because the strongest winds were located far from the center of Alex as the system underwent an extratropical transition.

[1] One person suffering a heart attack died as an indirect result of Alex when turbulence from the storm hindered their emergency helicopter from taking off in time.