The analysis reviews Alphabet's Q2 2025 earnings, noting a revenue beat of $96.4 billion, up 14% year-over-year, and earnings per share of $2.31, up 22%. The growth is attributed to AI integration across Google Search, YouTube, subscriptions, and Cloud. A key concern is a capital expenditure increase to $85 billion in 2025 to support cloud and AI, affecting short-term free cash flow, which is down 61% year-over-year. Alphabet's increased focus on YouTube premium and the new Google premium is contributing to subscriptions, which make a large revenue share from its core Google search advertising segment. The predicted earnings per share in 2029 is $16.29, implying a forward PE ratio of 11.68.