Google’s Alphabet stock (NASDAQ: GOOG) is currently trading between the $395 to $400 psychological levels on Friday. GOOG went from a low of $273 to a high of $395 in less than two months, delivering remarkable returns to traders. Institutional funds took entry positions ahead of the earnings call in April and made quick profits. On the heels of the robust revenues, Google’s $462 billion Cloud enterprise backlog could make the stock remain in a dominant position for the next five years.
While Alphabet is facing criticism over its $185 billion capex to build its AI infrastructure, the $462 billion Cloud backlog makes the capex look like a bargain. The development puts Google stock in a dominant position as smart money is focused on the $426 billion Cloud backlog. This would make the $185 billion capex look like a steal deal, as revenues worth billions would pour until 2030.
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Google Stock: What Is a Cloud Backlog? What Does It Mean?
For the uninitiated, a Cloud backlog means that Alphabet has signed partnerships with high-stakes companies and committed to providing AI services, Cloud enterprise, and computing assistance. The services are yet to be delivered and remain in the pipeline, but the legal contracts have already been signed. The business backlog is worth $462 billion, and the delivery of these services will run until 2030. Therefore, Google stock will benefit every year through the Cloud backlog, adding revenues to its already phenomenal earnings market price.
Institutional funds are now closely observing the $462 Cloud backlog that can drive Google stock price upward. This changes the math for Alphabet, making it remain much ahead in revenues compared to competitors. The backlog is already locked in, and the revenue will flow after the services are provided. Therefore, Google stock has massive potential until the end of the decade till 2030.