ALPHABET CLOUD SURGE AND AI DOMINANCE OVERSHADOW CAPEX FEARS AND KEEP ME BUYING

What happened: Alphabet's Google Cloud revenue growth accelerated to 82% in Q2 2026, reaching $24.77 billion, while total Q2 revenue rose 24.23% to $119.80 billion. Q2 capex doubled to $44.92 billion, pushing free cash flow negative. Key numbers: Cloud growth 34% Q3 2025, 48% Q4, 63% Q1 2026, 82% Q2 2026. Cloud backlog over $460 billion. Why it matters: The author keeps adding to GOOGL, citing cloud growth, backlog and operating margin as metrics to track, and notes J.P. Morgan's view that Google can resist AI fears. Capex, rising debt and a suspended buyback are framed as the main risks.

Alphabet's Google Cloud revenue growth accelerated to 82% in Q2 2026, reaching $24.77 billion, while total Q2 revenue rose 24.23% to $119.80 billion. Q2 capex doubled to $44.92 billion, pushing free cash flow negative.

The author keeps adding to GOOGL, citing cloud growth, backlog and operating margin as metrics to track, and notes J.P. Morgan's view that Google can resist AI fears. Capex, rising debt and a suspended buyback are framed as the main risks.