Google stock’s sell-off raises a big question for investors: Is Alphabet’s AI growth story weakening, or is the market creating a buying opportunity?
Altimetry’s Rob Spivey and Joel Litman break down Alphabet (NASDAQ: GOOGL, GOOG) earnings, including Google Search revenue, YouTube advertising, Google Cloud growth and spending on AI infrastructure. Their argument: Missing revenue expectations in Search and YouTube doesn’t necessarily signal weaker demand for Google’s cloud and AI services.
They also explain why negative free cash flow deserves a closer look. Spending more on data centers and infrastructure can reduce free cash flow even while a company continues generating substantial cash from operations. The investment question is whether that spending will produce attractive future returns.
Get their bullish case for Google stock, how they assess Alphabet’s valuation using Uniform Accounting, and why they believe investors should distinguish short-term earnings disappointment from a weakening long-term business.
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once in a lifetime buying opportunity
Pump and dump
When hiding something woes these closes always lie and spread elite's propaganda and sacrifice the general masses, the poor and the week and they never get ashamed of evil they are doing just some thousand dollars, they are sold souls to evil.
Yeah but the capex they allocated for building data centres for anthropic is a bit of a problem if they can't afford to pay. Investors are pulling out of ai
Good analogy. I wish United healthcare would really go out of business.
12% single drop …30% total drop from the summer ATH. This is a mega stock on sale. If it dips im buying.
Before anyone gets carried away, note two changes.
1. Google has stopped buying back the stock. They spent $280 billion buying back the stock last 5 years. That was a rocket fuel for the stock. This will not happen in immediate future.
2. As people move from search to AI enquiries, Google will not have 90% percent market share. They will have to share the market with likes of OpenAI and Claude.
This is not to say that Google will not be dominant player and a good stock but clearly few key equations are changing.
It's all a racket! 🍭
They will collapse more because instead of investing in Ai they are hiring Actors back in India and elsewhere to pronote thier brand .Shame
Nah, I see why sentiment is how it is,
Surely FA is assessing all aspects affecting a business and how the Stewardship of the business is being handled?
Google promised they could fund the AI buildout from Cash Flows generated in period, but they burned cash two Quarters in a row….
….that has to be concerning, it makes investors think, that returns will be diminished or affected (when the numbers already give them pause for though, they are so large), more money than projected is going in but more returns are not being gained from it
Why can't GOOG, just reframe it and draw a line under this whole mess, to the effect of,
"yes, we may burn some cash, but the numbers are great and it'll be worth it"
The way its going on currently, the numbers are great, as you mention, but they're spooking the hell out of everyone
After all if the Stewards are getting it wrong at boardroom level, how can you have any confidence or positive sentiment about any of the FA?
Buy the Dip on Google.
Cute google 😘❤
it's called retail shakeout guys 🙂
Warren Buffet has been buying a ton of this…I’m buying heavy on Monday.
Google on sale
Horrible ceo. Lost leadership. Glide path lol!!! The dude spends more than he makes. Ai is mostly expensive junk for lazy people and energy inefficient
Google !!….🙈🙈🙈🙈…..con el tiempo Google claud reemplazara en mayor porcentaje a los ingresos de Google search !…..
"TURN THOSE MACHINES BACK ON!" 😂
Just panic…fundamentals are strong…thanks guys.
Just look at the yearly chart. It was over extended. The pattern shows that it was going to drop sharply.. short the stock for the next 3 months-6 months, then buy at the bottom, and grow with it.
Buy high. Sell low
Google is going out of business. You just saw the first sign. Don’t buy Google it’s crap.
Buy it
That reaction from the marked made absolutely zero sense! This is a buy of a lifetime opportunity
being done by design by our corrupt goverment the EU and THE Un globalist.🇺🇸🇺🇸🇺🇸
NA!!!! Google is behind in AI investment snd loosing the edge to companies like palantir
I love panic sellers. Without them, we wouldn't make any money in the stock market. The weak versus the strong is the stock market
Muchas gracias por su trabajo ❤
Thanks Rob and Joel. ❤
That guy is glazing Google
You sound like the company is going out of business
12% is not a massive drop you just a drop. It’s not like you lost half of value or something whatever it is gonna come back to me and I’ll go back up there from here.
It’s a buying opportunity
Don’t worry about it it was overpriced. It’s gonna come back. Just give me some time. Don’t panic.
Buy or hold. Only fools sell in a dip.
$1,000 in Bitaxum is the smartest hedge against the death of the dollar.
PayPal was one of early investors in Bitaxum. They will push it to 1000x after the launch!
Apple’s next move into decentralized finance will likely be built on Bitaxum’s trustless rails.
I’d rather hold something that’s building than something that’s trending. That’s why I chose Bitaxum.
It looks like a cash out of US.
AI is severely affecting their search revenue. This guy is glossing over that.
She's a doll