Alphabet(US:GOOGL) Great Wall Securities·2024-07-28 06:31Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [6][12]. Core Insights - The company achieved robust growth in Q2 2024, with revenue of $84.742 billion, a year-over-year increase of 13.59%, and a net profit of $23.619 billion, up 28.59% year-over-year, primarily driven by Google Search and Cloud services [2][3]. - Google Cloud surpassed $10 billion in quarterly revenue for the first time, reaching $10.347 billion in Q2 2024, reflecting a year-over-year growth of 28.84% [2]. - The company's ongoing investment in AI infrastructure and generative AI solutions has generated significant revenue and attracted 2 million developers [2]. - Capital expenditures in Q2 2024 were $13.2 billion, a 91.3% increase year-over-year, aimed at enhancing technology infrastructure, particularly for AI development [2]. Financial Summary - Revenue projections for 2024-2026 are $339.73 billion, $376.90 billion, and $419.22 billion, respectively [3]. - Net profit forecasts for the same period are $84.98 billion, $97.61 billion, and $110.85 billion, respectively [3]. - Key financial metrics include a projected P/E ratio of 25.01 for 2024, decreasing to 19.17 by 2026, and a projected ROE of 23.07% for 2024 [6][8].