GOOG
💰 Alphabet plans a $75 billion capital expenditure for 2025, 30% above market expectations.
☁️ The company is investing heavily in new data centers to meet the growing demand for Google Cloud services.
📈 Alphabet’s CFO emphasizes that investments are made with a focus on return on capital.
✅ The company has substantial free cash flow and the capacity to reinvest for growth.
@InvertirdesdeCero:
“Alphabet met most expectations, but fell slightly short in its cloud segment, specifically 1.9% below estimates. The company has planned a capital expenditure of approximately $75 billion for 2025, which is 30% above the market’s expectation of around $58 billion. This news led to an initial drop of 7% in after-hours trading, which accelerated to a 9.9% decrease the following day. However, the speaker believes that this increase in capex is relatively normal among major cloud providers. Alphabet had nearly $95.6 billion in cash and short-term investments, which is not actively generating returns. The company also generated around $72 billion in free cash flow in 2024. The speaker argues that Alphabet needs to reinvest this capital to avoid inefficiency, as regulatory constraints limit acquisition opportunities. The speaker views the market’s negative reaction as an overreaction, presenting a potential investment opportunity.”
Watch the exact part of the video where Fernando talks about Alphabet here:
Watch the video on YouTube.
Read more articles by top analysts on Alphabet (GOOG) at the following link. GOOG stock.
