GOOGL fell despite 199% EPS growth and 24% revenue increase, with cloud backlog rising to $514 billion sequentially.
Alphabet (NASDAQ:GOOGL) shares declined 7% after reporting Q2 earnings that surpassed expectations, with EPS rising 199% and revenue growing 24% year over year. The stock closed at $319.74, down from $348.10 on earnings day, despite strong fundamentals.
Google Cloud growth accelerated to 82%, with a backlog reaching $514 billion, up $50 billion sequentially. Cloud operating margin improved to 35.6%, while Search and other revenue grew 17% to $63.27 billion. Nearly 90% of the Fortune 100 now uses Gemini Enterprise.
The market reaction contrasted with the company’s performance, as investors appeared to overlook the earnings beat and focus on broader sentiment.