Alphabet's Q2 results show revenue growth, strong AI investments, stock down

From “VIDEO: NASDAQ”: 2024-07-28 04:30:00

Alphabet (NASDAQ: GOOGL) reported strong Q2 results with revenue reaching $84.7 billion, fueled by Google Cloud’s 29% revenue growth. Despite a dip in stock price following the announcement, Alphabet’s investments in AI and self-driving cars show promise. With a P/E ratio of 20, now may be a good time to invest.

Alphabet’s search revenue increased by 14%, while YouTube ad revenue rose by 13%. Waymo, its self-driving car unit, now provides 50,000 public rides weekly. The company plans to invest an additional $5 billion in Waymo. Alphabet generated $13.5 billion in free cash flow in Q2, with plans for continued growth and investment.

Alphabet’s increased spending plans caused concern among investors, leading to a stock price drop. However, CEO Sundar Pichai sees underinvestment as a greater risk. With a forward P/E ratio of 20 and strong AI and search performance, Alphabet presents an attractive buying opportunity. The company remains well-positioned in the tech landscape.

The Motley Fool identifies Alphabet as a good investment opportunity, with the potential for substantial returns. Alphabet stands out as a strong player in the AI, cloud, and search sectors. With its impressive cash flow and strategic investments, Alphabet is poised for long-term growth in the tech industry.



Read more at “VIDEO: NASDAQ”: Alphabet Sees Google Cloud Has Momentum, but the Stock Is Down. Should Investors Buy the Dip?