Jul. 30 at 3:47 PM
The post-earnings debate around
$GOOGL is no longer about AI demand. It is about the cost of meeting it. On July 22, Alphabet reported Q2 revenue of
$119.8 billion, up 24%, while Google Cloud grew 82% to
$24.8 billion. The concern is that 2026 capex guidance rose to
$195-
$205 billion and quarterly free cash flow turned negative by
$5.9 billion.
I see Cloud’s acceleration as real evidence that AI infrastructure is being monetized, not just built. Still, investors now need proof that revenue can scale faster than the spending burden. Search growth, Cloud margins and TPU sales are the numbers I would watch next.
$VZ also has a direct link to this buildout through a Google fiber contract worth more than
$1 billion.
Not financial advice. Do your own research.
