$Alphabet(GOOGL.US)Google only sold off for a day after earnings before Microsoft’s strong results helped lift sentiment across the cloud sector. The market quickly regained confidence in Google Cloud, suggesting investors still believe AI infrastructure spending can translate into long-term growth.
Now the focus shifts to the next earnings report. The biggest question is no longer capex itself, but whether those investments can start producing healthier cash generation. If Google can return to positive free cash flow while maintaining solid Cloud growth, it would go a long way toward restoring confidence in its AI strategy.
The market has shown it‘s willing to be patient—but only if the financial results begin to catch up with the investment story.
@Captain's Treasure
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