TMTB: GOOGL NOW First Takes

GOOGL -1%: Top line looks v. solid beating expectations across the board but OMs missed at 32.4% vs street at 33%+ and buyside looking for higher. 2025 Capex raised to $85B from $75B (good for AI semis, especially AVGO +3%/CLS +4%)

Key will be explaining lack of profit flow through - will be the key question for the call…but otherwise revs look v v good and will help sustain the bourgeoning narrative that GOOGL is benefiting from AI

Total Revs 13.8% vs buyside at 11.7% vs street at 10.75%

OMs missed at 32.4% vs street at 33% and buyside for a bit higher

Search: 11.7% vs. Buyside at 10.5%+ and street at 9%
Youtube: 13% vs. Buyside at 12% and street at 10%
GCP: 32% vs Buyside at 27.5%+ and street at 26.8%, 3 ppts accel on a similar comp

2025 Capex: Raises capex to $85B from $75B

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NOW +7%: Looks solid….cRPO beat at 21.5% vs bogeys of 20.6% and street at 19.5%. Subscription revs guided to 20-20.5% vs street at 19% for the FY. Q3 cRPO guide 18% vs vs bogeys closer to 18.7%