Alphabet: The AI Business Is Booming, But I'd Sell Before Earnings

Alphabet is rated Sell at $317.28, with a DCF-based fair value of $178, citing aggressive capex and uncertain future cash flows. Core Search remains robust, growing 17% YoY, while Google Cloud posts rapid expansion and a $514B backlog but faces margin and capex uncertainties. GOOG's capex guidance of $195B-$205B for 2026 and a projected $270B in 2027 raises concerns about sustainable free cash flow and long-term returns.