Yahoo Finance analysis suggests Wall Street is misreading Alphabet's AI capex concerns, citing strong Cloud growth and undervalued stock
Yahoo Finance's analysis indicates that Alphabet's (Google) stock is undervalued despite concerns over AI capital expenditure. The report highlights that Google Cloud revenue grew 82% year-over-year in the June quarter to $24.77 billion, with a Cloud backlog of over $460 billion. Analysts note that Alphabet's P/E ratio of 15 is low given its 24.23% revenue compounding rate, and 47 out of 53 analysts have revised their 2026 EPS consensus upwards in the past 30 days, with zero downward revisions.
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