Alphabet's Q3 Growth and Cloud Momentum Support a Generational Buy

seekingalpha.com —

Alphabet reported 24.7% year-over-year revenue growth in Q3, despite missing earnings and revenue expectations due to an unrealized loss from a SpaceX investment. Google Cloud revenue doubled to $30.7 billion, with operating income tripling and backlog rising to $561 billion. The company's aggressive $51.4 billion capital expenditure led to negative free cash flow, but investments are fueling AI and cloud momentum. An updated discounted cash flow model values Alphabet stock at $429 per share, over 40% above the current market price. Key risks include sustained high capital expenditures and continued negative free cash flow.


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