- Alphabet reported Q2 revenue of $119.80 billion, up 24.23%, and Google Cloud revenue of $24.77 billion, up 82%.
- Google Cloud backlog stands at $514 billion, with over half expected to convert within 24 months.
- Q2 capital expenditure hit $44.92 billion, up 100.14% YoY, resulting in negative free cash flow of -$5.86 billion.
- TD Cowen raised its Alphabet (GOOG) price target to $485 from $475 and maintained a Buy rating, citing cloud growth expectations.
- TD Cowen projects Q3 net revenue growth of 30.3% YoY for Alphabet, 2.7% above consensus, and expects Google Cloud revenue to more than double in Q3.
- Alphabet trades at 22x forward earnings and 17x trailing earnings, with its stock at $341.35, nearly 15% below its May peak.