Alphabet Stock Looks Undervalued Despite Rising Debt Concerns

Alphabet's stock appears undervalued given its recent growth and leadership in AI infrastructure. The company trades at $343.80 with a forward P/E of 17, which is relatively low compared to other tech giants like Microsoft.

The 24.2% revenue growth and 82% increase in Google Cloud are significant positives for Alphabet's financials. However, rising capital expenditures and increased debt raise concerns about the company's near-term cash flow and margin pressure.

Investors may wait for Q3 results to confirm sustained Cloud growth and margin stability before re-rating the stock. Analyst consensus targets suggest significant upside potential, with a target of $428.04 implying a 24% increase from current levels if growth continues.