Google Cloud Revenue Surges 82%, Alphabet Raises Capex to $205B
GOOG sits 84% above its 52-week low of $194.467.
Summary
Alphabet's Q2 earnings show Google Cloud accelerating to 82% growth, hitting $24.8B in revenue and tripling operating income to $8.8B. The cloud backlog swelled to $514B, with over half converting in 24 months. Search and YouTube also delivered double-digit gains. However, capex guidance jumped to $195-205B, pushing free cash flow negative and compressing margins. The company raised $49.6B in equity and $20.3B in debt to fund AI infrastructure. Shares initially dipped but rebounded ~10% as the market digested the cloud momentum against the spending surge. This follows the $80B capital raise plan announced in June and the $700B capex plan from May, reinforcing Alphabet's all-in AI bet.
At the time of this announcement, GOOG was trading at $357.09 on NASDAQ in the Technology sector, with a market capitalization of approximately $4.4T. The 52-week trading range was $194.47 to $404.47. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Leverage Shares.