From The Motley Fool · The Rule Breakers Team · · 1m
Alphabet's Cloud Growth Costs Less to Own
Alphabet's cloud and AI growth now cost less to own after a 10% stock drop.
In brief
Alphabet's cloud and AI growth now cost less to own after a 10% stock drop. Alphabet's stock remains 150% above June 2022 price despite cloud revenue doubling and AI chip sales, with debt covering search slowdown costs. Originally reported by The Motley Fool.
Cloud Revenue Doubles
Google Cloud revenue grew 103% to $30.7 billion in the quarter.
AI Chip Sales Surge
Alphabet sold custom AI chips to outside customers, driving cloud growth.
Stock Drops 10%
Alphabet stock fell over 10% at Thursday's open after reporting negative free cash flow.
Debt Rises to $125 Billion
Alphabet's long-term debt climbed to about $125 billion, nearly six times a year earlier.
Search Revenue Slows
Google Services revenue grew 11%, down from 15% the previous quarter.
Shareholders See Value
Investors can buy Alphabet futures for 10% less than before the report.
Here's the gist
Alphabet's stock remains 150% above June 2022 price despite cloud revenue doubling and AI chip sales, with debt covering search slowdown costs.
