Alphabet

Google Cloud more than doubled this quarter. Its revenue jumped 103 percent to 30.7 billion dollars, and its profit more than tripled to 11.1 billion. Companies are lining up to rent Google's AI computing power and even buy its homemade AI chips, and Cloud now brings in nearly a quarter of all Alphabet's sales, up from about 15 percent a year ago.

The big fear was that AI chatbots would replace Google Search. Instead, Search revenue grew 12 percent to 63.4 billion dollars, and people are searching more than at any time in the last five years. Google's own Gemini AI app just hit one billion users, which makes it the fastest growing product in the company's history.

Alphabet is borrowing money and selling new stock very quickly to pay for AI data centers. Long term debt has nearly tripled since December to 125.1 billion dollars, with 28.7 billion borrowed this quarter alone, and the company sold another 12.4 billion dollars of new shares. If AI demand cools, all that spending becomes a very expensive problem, and every new share makes your slice of the company a little smaller.

Alphabet earns side income, mostly from stakes it owns in other companies. That side income flipped from a 12.8 billion dollar gain a year ago to an 8.2 billion dollar loss this quarter. That pulled overall profit down 25 percent to 26.2 billion dollars, even though the core business earned 30 percent more. These on paper swings can make Alphabet's profit look jumpy, so the core business is the better thing to watch.