Alphabet posted strong Q2 results with $96.4 billion in revenues (+14%) and robust Cloud growth, yet its $85 billion in CapEx raises concerns about sustainability and capital efficiency. With advertising accounting for 80% of revenues, Alphabet remains exposed to cyclical downturns in ad spending. While EPS of $2.31 (+22%) is solid, looming antitrust pressures could threaten profitability and even future dividends. For conservative investors, Alphabet’s mix of aggressive spending and regulatory risks makes it a questionable choice.
