Alphabet (GOOGL) Q4 Earnings Preview: Cloud Revenue Up 34%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 49m ago
0mins
Source: Fool
- Revenue Growth Trends: Alphabet's Q3 revenue rose 16% year-over-year to $102.3 billion, surpassing the 14% growth in Q2, showcasing strong performance across Google services and YouTube ads, thereby reinforcing its market position.
- Cloud Business Highlights: Google Cloud's Q3 revenue grew 34% year-over-year to $15.2 billion, with operating income soaring from $1.9 billion last year to $3.6 billion, reflecting surging AI demand and significant strategic investments in technical infrastructure.
- Increased Capital Expenditures: Alphabet's Q3 capital expenditures reached $24 billion, a substantial rise from $13.1 billion a year ago, with management raising the 2025 capital spending outlook to between $91 billion and $93 billion to support rapid expansion in cloud and AI businesses.
- AI User Growth: Alphabet's AI Mode boasts over 75 million daily active users in the U.S., while the Gemini app has 650 million monthly active users, indicating strong growth potential and market demand in the AI sector.
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 338.25 USD with a low forecast of 279.00 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
27 Buy
7 Hold
0 Sell
Strong Buy
Current: 330.540
Low
279.00
Averages
338.25
High
390.00
Current: 330.540
Low
279.00
Averages
338.25
High
390.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
