Alphabet Just Gave Investors 514 Billion Reasons to Load Up on Shares
Alphabet's cloud computing business is booming.
Overview
Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has been a strong stock pick over the last few years, but I think investors just got another reason why it can continue to deliver incredible performance over the next few years. During its second-quarter earnings presentation, Alphabet informed investors that its Google Cloud backlog had spiked to $514 billion. For reference, Google Cloud generated $24.8 billion in revenue during Q2 2026. At that run rate, it would take Alphabet over five years to churn through its backlog. That's not going to happen in that long a time frame, as Alphabet will increase its computing resources to allow it to churn through that backlog much faster.
That is a recipe for great company success, and I think it will also deliver strong stock performance. If you don't have shares of Alphabet, now is the time to load up, while the market is distracted by spending rather than focusing on real business performance.
Image source: The Motley Fool.
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Originally published at www.fool.com.