Alphabet Inc. (GOOGL) has surged nearly 15% in just five days, reaching an all-time high of $240, fueled by a positive Q2 report and a favorable court ruling that mitigated breakup risks for its business units. Shifting towards AI-driven growth, Google’s Q2 performance showed a 32% YoY increase in Cloud revenue, reaching $13.6 billion, with operating margins improving significantly. This indicates a strong operating leverage amid rising costs. Despite the impressive growth, GOOGL’s flagship Gemini product is still developing market presence. However, Gemini’s user traction is notable, boasting six million Android app installs weekly, surpassing ChatGPT’s recent numbers. Google plans to invest $85 billion in capital expenditures to enhance AI infrastructure, indicating a robust long-term strategy. With analysts rating GOOGL as a Strong Buy and its valuation remaining attractive compared to Microsoft, prospects look promising for profitable growth driven by innovative AI solutions.
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