BlockBeats News, July 22nd - Financial professor and CTA (Commodity Trading Advisor) Damir Tokic recently published a "Google Earnings Preview" on the U.S. investment platform Seeking Alpha, sparking discussion in the U.S. stock investment community. The article stated that Google's parent company, Alphabet, may become the first among large tech companies to cut AI capital expenditures.

Alphabet will hold its 2026 second-quarter earnings conference call on July 22nd at 4:30 PM Eastern Time, corresponding to July 23rd at 4:30 AM Beijing Time. According to Alphabet's investor relations announcement, relevant financial materials will be released before the call. The market expects that AI infrastructure investment, Google Cloud growth, and free cash flow performance will be the key focus of this earnings report.

In the article, Tokic pointed out that Alphabet has been increasing its AI investment in recent years, including data centers, servers, and cloud infrastructure construction. However, this expansion has also brought about cash flow pressure. If AI-related revenue cannot quickly cover capital expenditures, the company may need to rely on debt or equity financing to support investment in the future, potentially leading to credit risk and shareholder dilution concerns.

The article also mentioned that although Google Cloud continues to grow rapidly, there are signs of a slowdown in the growth of backlogged orders, which may weaken market expectations for AI cloud demand. At the same time, new products such as AI Search, Chatbots, and AI Overview are changing the way users access information, which could potentially impact Google's core profit driver, Search Advertising, in the long run.

Tokic believes that if the upcoming earnings report fails to prove that AI investment is yielding adequate returns, Alphabet's capital expenditure plans may face reassessment, and the stock price may come under pressure. For investors, this earnings report is not only related to Alphabet's performance but may also serve as a key signal for observing the AI investment cycle of large tech companies.