Alphabet Inc. (NASDAQ:GOOG) reported mixed Q4 FY24 results, narrowly missing revenue expectations but exceeding EPS estimates. A substantial $75 billion capital expenditure budget for FY25, significantly higher than the anticipated $57.9 billion, signals aggressive investment which may scare some investors. Management commentary suggests robust demand for Google Cloud, including its Generative AI offerings, with growth currently limited by capacity constraints thereby justifying the increased capital expenditure aimed at expanding infrastructure.
Alphabet’s key metrics remain strong, and Google Cloud’s margins finally reached double digits, addressing previous concerns. While the earnings call showcased future vision and generated excitement, as is typical, it remains to be seen how quickly these initiatives translate into accelerated growth. For more details, key highlights, and commentary, check out the high-level earnings summary.
