Sundar Pichai's Alphabet Has Grown Google Cloud Revenue 82% Year Over Year. Here's Why That Growth Rate Justifies the Company's Capex Bet.

Published September 3, 2026 · Category: Finance

Overview

The market has soured on Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) stock since the company said it planned to raise capital expenditures (capex) to up to $205 billion this year, a significant increase from its original outlook of $180 billion to $190 billion.

This announcement completely overshadowed the company's excellent second-quarter performance, and the question investors are grappling with is whether the outlay is justified. Clearly, if the market believed there would be substantial positive results, it wouldn't react negatively.

Details

However, the market isn't always right, and sometimes, that's where investors can pick up the best opportunities. Here's why Google Cloud's growth justifies the capex spend, and at the current price, Google is priced to buy.

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Source

Originally published at www.fool.com.

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