Alphabet Slips 2.2% Despite $119.8 Billion Revenue as Investors Question $77.1 Billion Gain
Updated
Updated · Yahoo Finance · Aug 20
Alphabet Slips 2.2% Despite $119.8 Billion Revenue as Investors Question $77.1 Billion Gain
3 articles · Updated · Yahoo Finance · Aug 20
Summary
Alphabet fell to $337.16, about 2.2% below its prior close, as investors looked past a strong quarter and focused on a $77.1 billion unrealized gain on equity securities.
That scrutiny reflected concern that the investment gain is mark-to-market and not repeatable, even as core operations posted 24% revenue growth to $119.8 billion and Google Cloud jumped 82% to $24.8 billion.
Alphabet is still accelerating spending, lifting expected 2026 capital expenditures to $195 billion-$205 billion as it expands data centers, chips and computing capacity for AI demand.
At $337.16, the shares trade roughly 34.9% above GuruFocus's $249.86 GF Value estimate, leaving Search and Cloud under pressure to sustain growth without relying on temporary investment gains.