Alphabet Inc.'s updated capital spending guidance could overshadow revenue growth, as accelerating AI infrastructure investment will push FCF margins into negative territory. GOOGL's TPU system sales should accelerate in 2027, but I expect the lower margins in this hardware business to curb Google Cloud's operating margin expansion. Alphabet faces growing European regulatory pressure, with greater Android access requirements, search data sharing obligations, and antitrust proceedings creating financial and competitive risks.
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