Seeking Alpha
31 Oct 2026, 07:40 UTC · 1h ago
Alphabet: The 30% Earnings Miss That Wasn't
Impact · against what's priced in
Alphabet's recent price drop creates a buying opportunity because the operational strength of its Cloud business remains intact, despite a headline earnings miss. The market was penalizing the stock for a non-cash SpaceX paper loss, while the Cloud revenue growth and backlog provide the exact growth premium the current price has been declining to pay for.
- GOOGL+0.40
Challenges what's priced in
- The price assumes
Cloud growth sustaining at or above 40%
The price currently refuses to pay for Cloud growth acceleration, but the doubling of Cloud revenue to $30.7B and a massive $560.8B backlog provide concrete evidence that the growth the market declines to price in is actually occurring.
What GOOGL's price assumes · Sep 2
