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Alphabet defies Wall Street fears with strong AI-driven growth and solid financials.

Market News
04 Sep 2026
24/7 Wall Street
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Bullish
Alphabet defies Wall Street fears with strong AI-driven growth and solid financials.

Despite concerns that Alphabet's heavy AI investment would harm its business, the company continues to show strong growth and financial health. Google Cloud revenue surged 82% year-over-year, and overall segments like Search and YouTube ads also grew significantly. Alphabet maintains high returns on equity and invested capital, with a low P/E ratio of 15 making it an attractive buy. The company funds its AI expansion internally, avoiding heavy debt reliance, though rising capex and debt are noted risks. With a massive cloud backlog and reduced antitrust risks, Alphabet remains a compelling long-term investment amid skepticism.

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