**[Bloomberg: Google Earnings Focus on Cloud Business, Key Question is Whether High Growth Trend Can Continue]** BlockBeats News, July 22 – According to Bloomberg, Alphabet will release its second-quarter earnings report after the U.S. stock market closes on Wednesday. Investors will focus on whether Google Cloud's growth can demonstrate that its large-scale AI investments are yielding returns. The market expects Alphabet's revenue and net profit to grow approximately 25% year-over-year, with Google Cloud's revenue projected to increase nearly 65% year-over-year to $22.4 billion, compared to a 63% growth rate in the first quarter. Alphabet previously estimated that its capital expenditures could reach up to $190 billion by 2026 and stated that spending would "significantly" increase in 2027. Analyst forecasts compiled by Bloomberg suggest that its capital expenditures could rise to $262 billion by 2027, nearly triple the amount in 2025. As a result, investors are hoping the cloud business will continue to accelerate, confirming that the expanding investments in AI infrastructure are paying off. Alphabet's stock price has risen about 11% since 2026 but has fallen 14% from the all-time high reached in May. Janus Henderson investment manager Jonathan Cofsky stated that if the cloud business accelerates growth and the search business remains strong, it will help alleviate market concerns about the scale of spending and overall investment returns. Alphabet's forward 12-month price-to-earnings ratio is currently about 23 times, higher than its 10-year average of 21 times and comparable to the Nasdaq 100 Index. Evercore ISI analyst Mark Mahaney believes that given the sustained strong demand for AI infrastructure, there may still be significant upside potential in Google Cloud's revenue forecasts. [Original Link]