Key Points
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A $10,000 investment in Alphabet 10 years ago would be worth about $84,000 today, reflecting a compound annual return of approximately 24%.
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Alphabet reported a net income of $112.1 billion for the second quarter, including a $99 billion gain on equity securities.
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For 2026, Alphabet raised its capital expenditure outlook to a range of $195 billion to $205 billion.
On October 25, Alphabet (NASDAQ: GOOG and GOOGL) reported its second-quarter results, revealing a revenue of $119.8 billion, a 24% year-over-year increase, marking its 12th consecutive quarter of double-digit growth. Operating income rose by 30%, with Google Cloud revenue showing an impressive 82% growth year-over-year, reaching $24.8 billion.
As of now, Alphabet’s stock price hovers around $320 per share, with a price-to-earnings ratio of 16. However, this number is misleading, as the recent net income included significant unrealized gains, which could distort the company’s true valuation. The firm is also facing a shift in capital strategy, having reported a negative free cash flow of $5.9 billion in the last quarter while ramping up spending on data centers.
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