Google earnings:
Revenue and Cloud grew strongly (especially driven by AI), and core operating margins improved, but volatility in equity investments dragged down net income. Heavy capital expenditures continue to weigh on free cash flow. The stock is currently down 10% after hours.
AI investment is weighing on cash flow, but AI has indeed driven business growth.
The short-term risk is that the stock has already broken below key levels, and it may take time to recover. However, Google's valuation is now dirt cheap—at rock-bottom levels.
$SOL
Revenue and Cloud grew strongly (especially driven by AI), and core operating margins improved, but volatility in equity investments dragged down net income. Heavy capital expenditures continue to weigh on free cash flow. The stock is currently down 10% after hours.
AI investment is weighing on cash flow, but AI has indeed driven business growth.
The short-term risk is that the stock has already broken below key levels, and it may take time to recover. However, Google's valuation is now dirt cheap—at rock-bottom levels.
$SOL
