Alphabet Just Posted a Monster Quarter. The Stock Dropped Anyway. Time to Buy the Stock?

Alphabet reported strong Q2 results with 24% revenue growth and 82% Google Cloud growth, beating estimates across the board. However, the stock fell 7% after management raised capex guidance by $15 billion to $195-$205 billion, citing heavy infrastructure investments needed to meet AI demand. Despite concerns about cash burn, the company's $514 billion backlog and forward P/E of 21.3x suggest the spending targets confirmed demand rather than speculation, potentially presenting a buying opportunity for long-term investors.