overview
- GOOG is currently trading at around $346.77, down around 2%-3% over the past week due to sector volatility and Gemini 3.5 Pro model delays.
- Despite the short-term decline, Alphabet is up about 10% since the beginning of the year and is up an impressive 87% over the past 12 months.
- Google Cloud has emerged as a key growth driver, with a backlog of $462 billion and revenue up 63% in recent quarters.
- Alphabet’s capital spending guidance has risen to $180 billion to $190 billion, prompting Wall Street to monitor the impact on future revenue growth.
google teeth Currently trading $346.77It’s down roughly 2% to 3% over the past week. This mild setback is related to broader technology/semiconductor sector volatility and reported internal delays for Google’s upcoming Gemini 3.5 Pro model.
The alphabet remains mostly up. Year-to-date (YTD) 10% and posted a lot 87% increase over the next 12 months; dDespite a slight short-term dip.
Alphabet’s price-to-earnings ratio (PER) remains at a roughly stable level. 26x to 27x. This is a historically reasonable multiple for the company, especially considering its current net income. The next big opportunity is just around the corner. Alphabet is expected to release its second-quarter 2026 earnings after the market closes. July 22nd
Google Cloud is no longer just a side hustle. It was Alphabet’s first growth engine. Google Cloud’s total backlog has nearly doubled recently, a staggering number $462 billionis actively driven by the demand for enterprise-level AI tools.
:In the most recent quarterly metrics, cloud revenue increased by a whopping 63% and operating margin expanded to 33% (generating over $7 billion in operating profit).ft., Google has begun pivoting away from using custom-built AI chips— Tensor Processing Unit (TPU) —For internal workloads only. Alphabet is now opening lines to rent and sell its custom TPU capacity directly to external enterprise customers, AI labs, and financial companies. This puts Google directly into the merchant silicon computing market, traditionally dominated by the likes of Nvidia and AMD, and provides a highly scalable infrastructure revenue path.
Alphabet’s core digital advertising engines (search and YouTube) continue to drain historic amounts of free cash flow. created by the company Operating cash flow was $174 billion Over the next 12 months.
Management continues to pour this cash into consistent share buybacks, canceling approximately 5.3% of its total outstanding shares over the past three years. This equity reduction continues to mechanically boost earnings per share ($EPS$).
Alphabet’s Capital Expenditure (CapEx) Guidance Surges to Estimates $180 billion to $190 billion. Management has already said spending will continue to increase “significantly” next year. Wall Street will be watching closely to ensure that this huge spending does not drag down future net income, but instead leads directly to sustainable revenue growth.
Olumido Adesina
financial market writer
Olumide Adesina is a French-born Nigerian financial writer. He has over 15 years of working experience in investment trading and tracking financial markets.
