Impressive growth, and even more impressive capital spending.
According to page 6, year to date in 2026, operations generating $127B in cash, and capital spending on property and equipment was $132B, so year to date, the business consumed $5B.
According to page 8, in the last quarter, operations generated $42B and capital spending was $51B, so over the past three months, the business consumed $9B.
Those figures don't include any capital spending made through off-balance sheet arrangements. No idea what those might be, or for how much Alphabet could be on the hook.
I'm curious to see if all that money invested in infrastructure will pay off.
I'm sure Google will end up being one of the winners no matter what but man the market hates the stock. It was trading at 16 p/e before earnings and is now at like 14. Less than half of Microsoft, Apple, Nvidia.
Well it’s currently negatively affecting my life in every aspect other than being an upgrade to searches.
I don’t discount its capabilities since around April of this year, it passed my bar for being able to do amazing things. But it has also made any interaction I’ve had with companies a living nightmare and appears to have permanently deleted my career and knocked me down 1-2 economic classes.
Ad sales fall because the AI mania has made it clear that Big Tech does not care about humans, so humans go elsewhere.
Advertisers on the other hand are alerted to viewbotting with increasingly sophisticated AI "users".
It was clear already two years ago that the model of AI generated "content" that is watched by AI viewbots does not work. Of course Big Tech has to steam forward and find out the hard way.
Congrats, you have ruined the entire SV business model with your fantasies derived from cheap, horribly written SciFi novels.
2. Youtube meh, like always (weird that it doesn't kill it)
3. Search -- this was the issue. QonQ 0.1% <-- the whole story
Everyone has expected Search to, sooner or later, crack. This looks like it may be it.
If Google had 30B in revenue from coding tools and a few billion from Gemini Enterprise then there would be a story that Google could get through this.
But GDM didn't execute. And that's that.
Who knows the bottom. More than 10-15% seems unlikely. But if search cracks again next quarter then we'll see a real revaluing of the business.
Google did not have the proper focus on AI. They should have owned the space. But there were clearly management issues.
Although Argon hasn't delivered on coding yet I think that it's just the first checkpoint of the new model family since Hassabis, and I think it's promising, so if they can get a few good checkpoints in and then price gauge anthropic they can get that sweet sweet coding tools subscription revenue.
Antigravity is not that bad, pair it with a good model with good limits, ideally slightly cheaper than the X5/x20 sub from Anthropic, and I, for one, would switch.
One fun line from the results: Google assets are up in one year from $595,281M to $1,003,312M, in other words one trillion dollars. Not market cap, mind you, but assets that could in theory be sold today to raise a trillion dollars in cash.
Liabilities also increased from $180,016M to 325,763M, but in comparison that seems almost puny.
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[ 0.20 ms ] story [ 22.7 ms ] threadTranslation: even Google ... a company that basically has a license to print money (aka Google Search) ... is losing a ton of money on AI.
According to page 6, year to date in 2026, operations generating $127B in cash, and capital spending on property and equipment was $132B, so year to date, the business consumed $5B.
According to page 8, in the last quarter, operations generated $42B and capital spending was $51B, so over the past three months, the business consumed $9B.
Those figures don't include any capital spending made through off-balance sheet arrangements. No idea what those might be, or for how much Alphabet could be on the hook.
I'm curious to see if all that money invested in infrastructure will pay off.
That’s an amazing amount of revenue and spend, though. Wild.
I don’t discount its capabilities since around April of this year, it passed my bar for being able to do amazing things. But it has also made any interaction I’ve had with companies a living nightmare and appears to have permanently deleted my career and knocked me down 1-2 economic classes.
Advertisers on the other hand are alerted to viewbotting with increasingly sophisticated AI "users".
It was clear already two years ago that the model of AI generated "content" that is watched by AI viewbots does not work. Of course Big Tech has to steam forward and find out the hard way.
Congrats, you have ruined the entire SV business model with your fantasies derived from cheap, horribly written SciFi novels.
https://finance.yahoo.com/technology/article/google-stock-pl...
This right here is the source of most of humanity's upcoming problems.
This isn't true. Meta ad sales and traffic are surging. This is mostly a problem with Google.
2. Youtube meh, like always (weird that it doesn't kill it)
3. Search -- this was the issue. QonQ 0.1% <-- the whole story
Everyone has expected Search to, sooner or later, crack. This looks like it may be it.
If Google had 30B in revenue from coding tools and a few billion from Gemini Enterprise then there would be a story that Google could get through this.
But GDM didn't execute. And that's that.
Who knows the bottom. More than 10-15% seems unlikely. But if search cracks again next quarter then we'll see a real revaluing of the business.
Google did not have the proper focus on AI. They should have owned the space. But there were clearly management issues.
It's a huuuge training set, why would they kill that?
Liabilities also increased from $180,016M to 325,763M, but in comparison that seems almost puny.