For example,
Alphabet never enough:
While he could have been satisfied with a quarterly publication largely exceeding expectations. For example, Alphabet, the mother house of Google, announces in the process an increase of $ 10 billion in its expenses in the AI. Meanwhile, A choice that first worried the markets, the title backwards in post-clipping, before rebounding around +1%. Meanwhile,
Alphabet is the first of 7 magnificent to publish its results, and the tone is set. Furthermore, The group exceeds all forecasts with a turnover of $ 96.43 billion for the second quarter, against 94 expected according to the LSEG consensus, and a profit per share of $ 2.31 against 2.18 planned. Furthermore, A performance that would satisfy more than one, but not alphabet. For example, The financial director, Anat Ashkenazi, announced an increase of 10 billion investments, bringing the total to 85 billion. Moreover, A decision alphabet never enough that may seem risky, even though the firm faces several tensions.
More dollars – Alphabet never enough
Back to the start of 2025: Deepseek’s announcement had shaken the markets, pushing the tech giants to multiply investments in AI. In addition, At this period. Similarly, Microsoft had been forced to justify a 100 billion dollars capex for 2025, while Alphabet announced 75 billion centered on its Google Cloud activity. However, So, inevitably, when the firm unveiled an additional 10 billion, investors marked a time to stop … before being reassured by the conference call.
Because Alphabet remains an essential force in AI, in particular thanks to its agent Gemini, presented as one of the best in the sector. “We believe that. in the case of Google, the increase in capex is a good problem to have: it reflects strong growth in AI demand and better Google capacity alphabet never enough to invest thanks to increased access to IA infrastructure,” said Doug Anmuth, analyst at JPMorgan. In the same spirit, Ashkenazi insisted: “These investments are necessary to support our growth”.
Convincing results
Difficult, in fact, to question alphabet when the Google Cloud division becomes the trimester locomotive, with an increase of 32% of income, where expectations were tabling on +26.5%. The number of customers climbs 28%. Doug Anmuth sums up: “Google Cloud represents almost half the size of AWS. two -thirds of that of Azure, while increasing about twice as fast as WS and almost at the same pace as Zeure.”
In this context, it is not impossible for Broadcom, a key partner on ASICS, revises its forecasts upwards. For the record, it is he who provides the very coveted TPU Ironwood of Google. In June. Reuters revealed that Optai, however direct competitor with Chatgpt, added Google Cloud to alphabet never enough its suppliers list to benefit from the power of these chips. What strengthen the dynamics of the group and its central position in the IA ecosystem.
Two pending pressure points
With such a strong dynamic and a valuation always lower than that of its comparables, alphabet ticks many boxes. The fact remains that two elements deserve special vigilance.
First, almost 75 % of its income still comes from advertising, supported by its dominant position in research. But this model could be called into question with the emergence of AI. the evolution of uses on the Internet. If the group says that features like AI Overviews. AI mode attract more and more users, it will be necessary to closely monitor their performance in time. JPMorgan also reminds us: “The IA glimpses (AI Overviews) monetize at a rate roughly equivalent to that of traditional research. […] Advertisers seem ready to alphabet never enough pay more for a more qualified commercial track. ”
Finally, Alphabet faces a Department of Justice (DOJ) procedure for unfair competition. The verdict. expected in August, could be fraught with consequences: the firm could be forced to separate from its Google Chrome browser. For Justin Post and Nitin Bansal, analysts at Bank of America, an unfavorable decision would constitute a serious risk.
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