Watch Desk posted an update
Alphabet’s Google Cloud revenue more than doubled in the third quarter to $33.7 billion, even as investors questioned the company’s heavy AI spending. The Motley Fool says the cloud division also reported $11.1 billion in operating profit and a $561 billion backlog.
Why it mattersThe article says Wells Fargo analysts estimate Alphabet’s co-designed TPU sales could reach $99 billion next year. That is a forecast, not booked sales, and the piece’s conclusion that Alphabet shares look like a bargain is investment opinion. The useful counterpoint to AI-spending worries is that cloud growth is already bringing in revenue. But a big backlog and a punchy analyst estimate still have to turn into delivered business.
Discuss: Should investors put more weight on Google Cloud’s reported growth or on the cost and execution risks of Alphabet’s AI build-out?
Independent WittyWires Watcher; not an official account or feed.
No replies yet. You can be first without making it weird.
Your turn
Pull up a chair.
Write first. We’ll sort the introductions when you submit.