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Alphabet Just Shocked Wall Street with Its AI Surge — But at What Cost?

Alphabet’s second-quarter 2025 earnings report marked a pivotal moment in the company’s pursuit of AI-driven growth, delivering strong results alongside escalating investment challenges. The company posted a 14% yearover-year revenue increase, reaching a record $96.4 billion, bolstered by significant gains in its cloud, search, and YouTube businesses. Earnings per share rose to $2.31, beating Wall Street expectations of $2.18 and up from $1.89 a year ago. Alphabet’s ad sales grew 10.4% to $71.3 billion, driven by an 11.7% increase in search and a 13% jump in YouTube ad revenue. This surge reflects growing engagement across platforms, particularly as YouTube expands viewership on television screens. Notably, Google Cloud recorded $13.6 billion in revenue, a 32% year-over-year increase, with the number of deals over $250 million doubling and billion-dollar contracts matching the entirety of 2024 in just the first half of the year.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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