Alphabet Stock Price Dips Amid Record Revenue Growth

Alphabet's second-quarter revenue rose 24% year over year to $119.8 billion, accelerating from 14% growth in the year-ago period.

The company's operating income climbed 30% year over year, and its operating margin widened from 32% a year earlier to 34%.

Google Cloud revenue jumped an impressive 82% to $24.8 billion, with the segment's operating income roughly tripling to $8.8 billion.

The growth was broad-based, with Google Search & other revenue rising 17% year over year and YouTube ads revenue increasing 13%.

Despite this strong performance, Alphabet's free cash flow turned negative in the second quarter due to surging capital spending, which doubled from a year earlier to $44.9 billion.

The company expects higher depreciation expense from its new infrastructure to continue pressuring profits, and raised its full-year guidance for capital expenditures to a range of $195 billion to $205 billion.