From Nasdaq: 2025-02-08 03:25:00

Alphabet’s cloud computing business fell short of expectations in Q4, leading to a sell-off. Despite the bearish response, key details support a bullish case for the stock. Revenue and profit increased, but the cloud business failed to satisfy analysts’ expectations. Other bets segment disappointed, but overall revenue and profit hit record highs.

Investors are concerned about Alphabet’s increased spending on AI data centers and ongoing legal battles. However, the cloud computing industry is projected to grow at over 20% annually, offering long-term opportunity. Despite recent setbacks, Alphabet’s core businesses are still strong. The current dip may present a buying opportunity for interested investors.

Considerations before investing in Alphabet include the potential for high returns with other stocks recommended by the Motley Fool Stock Advisor team. Despite recent challenges, Alphabet’s overall potential remains strong. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet and Goldman Sachs Group.



Read more at Nasdaq: I’d Still Buy Alphabet Stock Despite the Stumble Over Q4 Cloud Growth. Here’s Why.