GOOGL Down 7% in the Past 3 Months: Buy, Sell or Hold the Stock?

Alphabet (GOOGL) shares have dropped 7% in three months due to massive AI infrastructure investments doubling capex to $44.9B and resulting in negative free cash flow of $5.855B. While the company faces competition in cloud and search, and regulatory headwinds, Google Cloud revenue surged 82% to $24.8B with a $514B backlog. The stock is rated a Hold with balanced risk-reward, as investors await proof that AI investments translate into sustainable free cash flow growth.