Alphabet’s Class A Google stock (NASDAQ: GOOGL) opened Wednesday’s trading session at $344. The search giant is having a rough path in August with little to no price spurts. Skepticism about the equity rose after Alphabet announced in its Q2 earnings that it would increase its capex on AI from $180 billion to $205 billion. This is what’s making its price stagnate in the charts, as Wall Street is concerned about overspending.

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Google Stock Is Still a Buy? Here’s Your Answer

Alphabet is monetizing its Google Cloud Platform (GCP) by shifting enterprise contracts by allowing clients to use Gemini to test their AI models. Clients are now actively paying Google to use Gemini and custom chips in their everyday work. The GCP’s scale has already reached $24.8 billion in Q2 revenue, up 82% year-over-year. The development highlights that Google is turning its AI model into a real, high-margin software business. For long-term investors, this is an assurance that Google’s revenues are coming from all corners, which eventually strengthens its stock prospects.

Google has a history of maintaining financial discipline in spending even when its capex has breached the limit. The search engine giant is monetizing its Cloud enterprise with its AI model for testing, gaining two revenue streams at once. The revenue stream for the company is high compared to its competitors, making Google stock a lucrative long-term asset. The Cloud business is directly benefiting Gemini and vice versa, making both have a strong footprint.

In conclusion, Google stock is still considered a buy, as the company’s business models are on the right track. Alphabet is positioning itself to gain revenue from various streams, leveraging its AI potential and dynamics. Its competitors are still searching for a clear AI blueprint to monetize their paths. Alphabet, on the other hand, is already doing it, and stays ahead of the curve.