Alphabet Printed The Best Hyperscaler Quarter, And The Market Still Found A Reason To Sell

Deep Value Investing11.26K FollowersFollow5ShareSavePlay(11min)Comments(2)SummaryIn my view, Alphabet delivered the best hyperscaler results in Q4, with Google Cloud revenue up 48% yoy and operating margin expanding to 30.1%.Notably, Alphabet was the only hyperscaler showing both cloud margin expansion vs. the same quarter last year, driven by in-house TPUs, notably the 7th Gen Ironwood.The near-term overhang is CapEx. Alphabet guided $175–$185B in 2026 (vs. $91.4B in 2025), above the $115B consensus, and with the Street's FCF models showing only $24B this year.I expect Alphabet to outperform in the long term, with the Gemini momentum and cloud margin expansion outweighing any short-term volatility.

Getty Images Alphabet Inc. (GOOGL) (GOOG) is down mid-single digits after the company released what I believe were the most impressive results among the hyperscalers. As has been the case for the past year, Google Cloud stole the show again. RevenueThis article was written byDeep Value Investing11.26K FollowersFollowSmall deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well, you can land a Jumbo on the spread and still have clearance for take-off. From time to time, I buy shares, mostly to not be categorized as a degen by my fellow investor friends, therefore the 50%-50% allocation. My timeframe tends to be between 3-24 months.I like stocks that have experienced a recent sell-off due to non-recurrent events, particularly when insiders are buying shares at the new lower price. This is how I often screen through thousands of stocks, mainly in the US, although I may own shares in banana republics. I use fundamental analysis to check the health of companies that pass through my screening process, their leverage, and then compare their financial ratios with the sector, and industry median and average. I also do professional background checks of each insider who purchased shares after the recent sell-off. I use technical analysis to optimize the entry and exit points of my positions. I mainly use multicolor lines for support and resistance levels on weekly charts. From time to time I draw trend lines, taken for granted, in multicolor patterns. Note: I tried to keep my introduction as real, and authentic as possible. I dislike empty suits, high-level BS, deep-level BS, unnecessary jargon, and self-indulgent, third-person written introductions with an air of superiority.Thanks for reading my introduction!Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.