koolgal
07-22
🌟🌟🌟 $Alphabet(GOOG)$ massive AI spending is transitioning from a speculative cost to a tangible growth driver.  What matters most across Alphabet's earnings is B) : AI Capex because its USD 180 billion infrastructure buildout underpins all other revenue streams.  If Capex efficiency rises, the entire AI platform scales.

Is Google the Most Complete Platform?

Yes as Google builds the chips - TPUs, trains the models - Gemini, run the cloud  - Google Cloud Platform and deploy the applications - Search and Workspace.

However the spending still needs more time to fully prove its return.  While capacity utilisation is improving, rapid infrastructure scaling often runs into natural bottlenecks.

As a long term investor of Alphabet I believe that it has exponential growth ahead. 

@Tiger_comments @TigerStars @Tiger_SG

Alphabet Drops 6.9% Post-Earnings: Does $200B Capex Spook the Market?
Alphabet fell 6.89% after guiding 2026 capital expenditure toward approximately $200 billion, stoking fears that AI investment will erode profitability. Despite solid Cloud and Search results — and recent buying by Buffett — the repricing of "heavy capex, slow returns" wiped more than $700 billion from Mag-7 market caps in a single session. Investors are reassessing the valuation anchor for mega-cap tech. As the AI arms race becomes a test of spending endurance, can Alphabet's moat absorb the bill?
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Comments

  • GabrielleSusan
    07-23
    GabrielleSusan
    180B only works if cloud margins keep lifting too. I’m bullish, but how fast can Gemini monetization really catch capex?
    • koolgal:Ā 
      Best of luck šŸ€šŸ€šŸ€
    • koolgal:Ā 
      May you have a winning week šŸŒˆšŸŒˆšŸŒˆšŸ’°šŸ’°šŸ’°
    • koolgal:Ā 
      Happy Trading šŸŒˆšŸŒˆšŸŒˆšŸ’°šŸ’°šŸ’°
    • koolgal:Ā 
      Appreciate your support 🄰🄰🄰
    • koolgal:Ā 
      Thanks for sharing your valuable insights 🄰🄰🄰
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