Alphabet: Google Cloud's Growth Story Comes With 1 Major Red Flag (NASDAQ: GOOGL) (NASDAQ: GOOG)
Before buying this Magnificent Seven stock, investors need to ask the right questions.
Overview
For the three-month period that ended June 30, Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) reported a better-than-expected top line of $119.8 billion. This figure was propelled by the monster success of Google Cloud, which posted stellar year-over-year revenue growth of 82%. This was after a huge 63% gain in the first quarter.
The Alphabet thesis is becoming more defined by its artificial intelligence (AI) ambitions. Investors must know that the Google Cloud story comes with one major red flag: negative free cash flow.
Image source: Alphabet.
Details
Source
Originally published at www.fool.com.
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