Alphabet Faces Declining Free Cash Flow: Is GOOGL Overvalued?

Reported 2 days ago

Alphabet Inc. reported increased Q2 revenue but a notable decline in free cash flow (FCF) margins, raising concerns about the valuation of GOOGL stock. With projections indicating a potential 10% drop in FCF and significant capital expenditure driven by AI initiatives, analysts suggest the stock may be overvalued. Investors might consider selling out-of-the-money put options as a strategy to capitalize on potential price declines.

Source: YAHOO

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