Alphabet’s cloud is booming, but the cash is gone
Google's cloud division is growing fast, but the company is spending more than it's making.
The story
Alphabet's Google Cloud revenue doubled to $31 billion, but free cash flow remains negative, with the company spending heavily on AI infrastructure.
Source: fortune.com
Our reading
Alphabet’s cloud division is doubling down on growth, but the company is spending so much on AI that its cash flow is in the red. It’s like a kid who wins a race but still has to pay for the trophy.
The CEO is celebrating the cloud’s 48% revenue jump, but the real story is that Alphabet is burning through cash faster than a candle at a birthday party. Investors are watching closely, but it’s unclear if the party will last.
Alphabet’s free cash flow is negative, but the cloud is positive. It’s the financial equivalent of a kid who’s good at math but bad at saving money.
