The author keeps adding to Alphabet because of its $514 billion backlog of signed cloud commitments, not just cloud growth rate. Google Cloud revenue rose 82% to $24.77 billion in Q2, and backlog grew from $155 billion in Q3 2025 to $514 billion. Total Q2 revenue rose 24.2% to $119.80 billion, and the author notes Alphabet's P/E of about 16 is lower than Microsoft's 30 and Amazon's 36. The main risk is debt-funded buildout: long-term debt rose from $46.5 billion to $98.2 billion, Q2 free cash flow was -$5.86 billion, and buybacks were suspended. The author argues this borrowing is less risky because it is backed by signed customer demand.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related tickers and likely impact
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.3T |
| Close on 10/12/2026 | 352.72 |
| Change that session | +0.30% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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