On July 23, Alphabet fell 3.35% in pre-market trading, trading at approximately $330.82/share, with turnover of $16.59 million.

The decline follows Alphabet's Q2 earnings release, which showed strong top-line results but alarming cash flow deterioration. Revenue reached $119.8 billion, up 24% year-over-year, beating estimates. EPS came in at $9.11, far exceeding the $2.88-$2.90 consensus. Google Cloud revenue surged 82% to $24.8 billion with backlog growing to $514 billion.

However, quarterly capex doubled to $44.9 billion for AI infrastructure, pushing free cash flow to negative $5.9 billion — the first negative reading in decades. The company raised its full-year capex guidance to approximately $195-$205 billion from prior $180-$190 billion, with management warning cash flow pressure will persist. Core search revenue also came in slightly below expectations, heightening concerns about traditional advertising growth during the AI transition. Barclays estimates capex could reach $500 billion by 2028, projecting consecutive years of negative free cash flow.

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