Alphabet Reports Q2 Results After the Bell Today. The Number That Decides the Stock Isn't Revenue or Earnings -- It's Capex.
One line item in this afternoon's report will tell investors more than the headline numbers will.
Overview
Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) reports second-quarter results after the market closes today, with the earnings call scheduled for 4:30 p.m. ET. The revenue and earnings may end up being the focus on many of the headlines. But I'd argue the number that actually has more implications for the stock sits further down the report. It's capital expenditures -- the money Alphabet is pouring into data centers and the computing infrastructure behind its artificial intelligence (AI) push.
After all, nobody doubts that the business is growing. The question is whether the company's AI spending is an investment compounding into more growth or a cost rising faster than the returns it generates.
Image source: Alphabet.
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Originally published at www.fool.com.