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Alphabet misses revenue and EPS estimates but shows strong cloud growth and AI investment.

Company Fundamentals
13 Nov 2026, 17:21 WIB
Seeking Alpha
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Bullish
Alphabet misses revenue and EPS estimates but shows strong cloud growth and AI investment.

Alphabet reported earnings with revenue $395 million below expectations and EPS $0.89 under consensus, marking a rare double miss. Despite slower ad growth, cloud revenue surged 103% year-over-year with expanding margins, supporting heavy AI-driven capital expenditure which hit a record $51.4 billion. This led to negative free cash flow, but the company holds $265 billion in liquidity to fund infrastructure expansion. The analyst maintains a 'Strong Buy' rating, seeing 30-40% upside over 2-3 years based on normalized earnings and free cash flow multiples, viewing the post-earnings dip as a good entry point.

Alphabet shares trade at USD 295.48 on Pluang as of Nov 13, 2026 22:31 WIB, down 1.08% in one day. The stock's market cap stands at $3.65 trillion with a dividend yield of 0.29%. Despite recent earnings misses, investor activity shows 66% selling and 34% buying on the platform.

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