Google (Alphabet) shares fell about 7% following the release of its second-quarter fiscal 2026 earnings report, despite revenue rising 24.2% year-over-year to $119.8 billion, with Google Cloud (Google) revenue surging 82% to $24.77 billion.The stock’s decline was primarily driven by investor concerns over the company’s quarterly capital expenditures of $45 billion and its first-ever negative free cash flow.However, analysts point out that Google’s current price-to-earnings ratio of 16 represents a rare discount relative to its sustained double-digit revenue growth, and that Google’s cloud business boasts a $514 billion backlog and a 35.6% operating margin,with a consensus target price of $428.12, suggesting significant upside potential for its stock price.