Alphabet reported robust second-quarter results on July 22, with revenue rising 24% year-on-year to $119.8 billion, beating analyst expectations of $117.02 billion. Operating profit climbed to $40.8 billion as the tech giant raised its full-year capital spending guidance to between $180 billion and $190 billion.
Google Cloud revenue surged 82% to $24.77 billion, far exceeding estimates of $22.46 billion, while the company's cloud backlog now stands at over $460 billion. Search revenue grew 17% to $63.27 billion, roughly in line with forecasts. However, free cash flow turned negative at -$5.9 billion for the quarter, and capital expenditure nearly doubled to $44.92 billion.
Analysts remain bullish on the stock, with BMO Capital raising its price target to $455 and Wedbush initiating coverage at $671. The consensus rating is 'Strong Buy' with an average price target of $433.98.