Why I Like Alphabet's Debt (Rating Upgrade)

The Techie 5.34K Followers Follow Summary Alphabet Inc. is ramping up debt issuance to fund aggressive AI infrastructure investments, despite recent negative free cash flow and market skepticism. GOOG's Q2 revenue grew 24% to $119.8B, with Cloud revenue up 82% and backlog surpassing $514B, confirming robust demand and supply constraints. TPUs are now a standalone revenue line, but meaningful contributions are expected in 2027. Despite recent underperformance versus peers, valuation compression and diversified growth drivers make GOOGL's risk-reward profile more attractive at current levels. I hereon share my sentiment on GOOG stock and why I see more upside ahead. Getty Images Alphabet Inc. aka Google ( GOOG ) is seeking yet another bond sale, but the market isn’t as moved this time around, and the stock is now flat in pre-market trading. According to Bloomberg , the company is “looking to This article was written by The Techie 5.34K Followers Follow I’m a retired Wall Street PM specializing in TMT; since kickstarting my career, I’ve spent over two decades in the market navigating the technology landscape, focusing on risk mitigation through the dot com bubble, credit default of ‘08, and, more recently, with the AI boom. In one word, what I’d like my service to revolve around is momentum. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.