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JPM: Alphabet Inc. (GOOGL.US) 1Q Results Strong, Cloud Backlog Nearly Doubles QoQ
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JPM released a research report stating that Alphabet Inc. (GOOGL.US) delivered strong results in 1Q, with its full-stack artificial intelligence strategy driving accelerating growth. During the period, Google Cloud backlog increased nearly onefold QoQ to USD462.3 billion, accounting for 99% of Alphabets total backlog. The bank expects more than 50% of the backlog to convert into revenue over the next 24 months, implying two-year cloud revenue visibility of more than USD230 billion. TPU hardware sales are already included in the backlog and are expected to begin revenue recognition later in 2026, with the vast majority to be recognized in 2027. Search and other paid clicks recorded accelerating growth for the fourth consecutive quarter, rising 13% YoY in 1Q, while cost per click increased 5%. Management expects capital expenditure to increase significantly again in 2027. JPM forecasts 2027 capital expenditure to reach USD293.4 billion, up 54% YoY. JPM maintained its Overweight rating on Alphabet Inc. (GOOGL.US) with a TP of USD460, based on a projected 2027 price-to-earnings ratio of 32 times. The bank believes Google is one of the few large-cap companies capable of delivering double-digit growth in revenue and EPS, and that its shares should trade at a premium to the S&P 500 Index. (ec/a) Auto-translated by AI This article was automatically translated by AI, the original language version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. More Details
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