Alphabet: Is the Stock a Buy on the Dip as Cloud Revenue Surges?

Despite delivering strong second-quarter results, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) shares sank following its results. The company upped its capital expenditures (capex) forecast, as it continues to plow money into AI infrastructure. The stock is still up 65% over the past year, although it's off more than 20% from its earlier highs this year.

Let's dive into the company's Q2 results and prospects, and why I think this is a great opportunity to buy the stock.

Alphabet's cloud computing unit, Google Cloud, once again stood out in Q2. Revenue for the segment continued to accelerate, surging 82% to $24.8 billion. That compares to 63% growth in the first quarter, 48% growth in the fourth quarter of 2025, 34% growth in the third quarter of 2025, and 32% growth in Q2 of last year. Perhaps even more impressive, though, is the operating leverage that the unit has been seeing.Continue reading