Total Assets
Rate Of Return$Alphabet(GOOGL.US)
I am leaning bullish on Alphabet into earnings, but the key test is whether its enormous AI investment is translating into profitable growth.
In Q1, Search revenue grew 19% while Google Cloud surged 63% to $20 billion, suggesting AI is strengthening rather than cannibalising the core business. So I will be watching Cloud growth, Search monetisation and operating margins closely.
The main risk is Alphabet’s planned $180–190 billion of 2026 capital expenditure, which could pressure free cash flow and increase depreciation.
Strong growth combined with disciplined spending would reinforce the bull case.
@Captain's Watch
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