Switching some encryption to stocks is intended to let the portfolio also participate in the growth of future productivity. What’s worth studying about Google is whether its AI investment can be turned into a more profitable business.
Look at its Q2 2026 report: cloud revenue grew 82% year over year, and cloud operating profit increased from $2.826 billion to $8.814 billion. Revenue and profit growing together is more convincing than simply announcing how many chips it bought.
My long-term outlook is somewhat positive, but cloud operating profit still isn’t the cash that shareholders ultimately receive. Next, we need to look at capital expenditures, depreciation, and free cash flow: if investment continues to consume cash, then no matter how fast growth is, the returns will have to be re-rated. A good company can create value, and the buy-in price determines how much you can share in that value.
Look at its Q2 2026 report: cloud revenue grew 82% year over year, and cloud operating profit increased from $2.826 billion to $8.814 billion. Revenue and profit growing together is more convincing than simply announcing how many chips it bought.
My long-term outlook is somewhat positive, but cloud operating profit still isn’t the cash that shareholders ultimately receive. Next, we need to look at capital expenditures, depreciation, and free cash flow: if investment continues to consume cash, then no matter how fast growth is, the returns will have to be re-rated. A good company can create value, and the buy-in price determines how much you can share in that value.