Alphabet Stock Price Dips to $343.80 Amid Capex Concerns

Alphabet's stock price has dropped to $343.80, making it an attractive investment opportunity according to some analysts.

The company's revenue growth of 24.2% and Google Cloud growth of 82% have led some to believe that the stock is undervalued compared to its peers, particularly Microsoft, which trades at a trailing P/E of 28.

However, there are concerns about Alphabet's increasing capex, which has doubled to $44.92 billion, and its impact on free cash flow, which turned negative at -$5.86 billion in Q2 2026.

Investors who are uneasy with the capex ramp may choose to wait for Q3 results to see if Cloud growth decelerates or operating margin falls below 30%.