Alphabet Keeps Strong Buy Rating as Cloud Revenue Jumps 82%
Updated
Updated · pluang.com · Aug 17
Alphabet Keeps Strong Buy Rating as Cloud Revenue Jumps 82%
3 articles · Updated · pluang.com · Aug 17
Summary
Alphabet retained a Strong Buy rating even after a post-earnings stock drop, with analysts looking past negative free cash flow tied to heavier capital spending.
Cloud revenue growth of 82% year over year underpins that view, supported by a $514 billion backlog that signals sustained demand.
Capital expenditures have also led Alphabet to halt buybacks, a near-term drag on cash returns that contrasts with the stronger cloud outlook.
The call suggests investors are weighing short-term cash flow pressure against longer-term expansion in Alphabet's cloud business.