Alphabet Reports $96B Q2 Revenue Amid AI Investment Surge, Legal Challenges

The Fidelity Freedom 2060 Fund has strategically increased its allocation toward AI-driven technology sectors, including semiconductor firms and AI software providers, while also bolstering defensive sectors like utilities and healthcare to mitigate late-cycle market risks. Alphabet's Q2 2025 financial results reveal a significant decline in free cash flow due to record capital expenditures focused on AI infrastructure, raising investor concerns about short-term financial strain despite robust revenue growth and a strong operating margin. Analysts from J.P. Morgan and Morgan Stanley maintain bullish outlooks on Alphabet, highlighting its leadership in AI, cloud computing, and advertising, with price targets of $232 and $205 respectively, viewing any regulatory uncertainty from the upcoming antitrust ruling as manageable and potentially over-discounted. Alphabet's AI initiatives have driven substantial growth across its core businesses including Search, Ads, YouTube, and Google Cloud, with innovations like Gemini AI models underpinning its long-term strategy. While corporate insider sentiment shows increased selling, expert consensus underscores Alphabet's AI-driven momentum as a compelling investment opportunity amid evolving market dynamics and legal challenges.