Alphabet Q2 Preview: Full-Stack Diversified AI Fortified From Downfall
Sentiment Analysis
Alphabet Inc. is resilient due to its integrated hardware/software AI stack, but valuation is elevated at current levels.
Cloud backlog stands at $462 billion, with significant customer concentration risk from Anthropic and a need to monitor backlog conversion rates.
Capex is surging, with 2026 guidance at $185 billion and risks if spending outpaces monetization, especially into 2027-2028.
I maintain a Hold rating on GOOG stock, lowering my 12-18 month target to $415, favoring patience and cash over new GOOGL/GOOG positions.
Since my last Alphabet Inc. (GOOGL, GOOG) analysis, the stock has gained 2.5% in price.
The company has earnings approaching on July 22, so I thought it timely to update readers on the catalysts and
Source: Seeking Alpha
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