Alphabet's Search growth slowed, and AI Mode earns less ad money per query, but Cloud sales rose 103%. The opposing results do not point the company's outlook in one direction.
The search business still faces questions: AI Mode earns less advertising money per query, and Search growth slowed. Cloud offers a strong result on the other side. Still, Alphabet spent $51.4 billion on long-lived assets and recorded negative $9.1 billion in free cash flow. This story centers on one investor's view, not a new company announcement. The business facts pull in different directions.
Microsoft generated $18.6 billion in free cash flow last quarter and was expected to stay positive through fiscal 2027. The article presents that cash generation as a strength against Alphabet's cash outflow.
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