Alphabet’s Q2 revenue beats estimates as cloud computing surges

Alphabet exceeded expectations in its second-quarter earnings report, surpassing revenue and profit estimates. Strong demand for Google Cloud services, growing at 32%, fueled the positive results. This led Alphabet to increase its capital expenditure plans to approximately $85 billion. The increased spending reflects investments in AI capabilities amidst growing competition. Google's advertising revenue also exceeded projections, rising by 10.4%. The company's overall revenue reached $96.43 billion. Despite the positive results, Alphabet's stock price dipped slightly in after-hours trading. CEO Sundar Pichai highlighted the increased cloud demand as the reason for higher capital expenditures. The significant investment in AI is viewed as necessary for future growth and product improvement.