Google Cloud Growth Resets Tech Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 30 2026
0mins
Should l Buy GOOGL?
Source: Newsfilter
- Cloud Revenue Surge: Google Cloud achieved a remarkable 63% revenue growth in the latest quarter, significantly exceeding market expectations of 50.1%, indicating its AI tools have become the primary growth driver for the first time, showcasing Google's strong competitive position in the cloud market.
- AI Spending Surge: The combined spending on artificial intelligence by the four major U.S. tech companies is projected to exceed $700 billion in 2023, up from $600 billion previously, reflecting investors' preference for firms that can translate spending into revenue growth.
- Capital Expenditure Increase: Google raised its annual capital expenditure forecast by $5 billion to between $180 billion and $190 billion to address industry-wide capacity constraints, demonstrating its commitment to ongoing investments in AI.
- Intensifying Market Competition: Microsoft anticipates a 39% to 40% revenue growth for its Azure cloud business, but faces stiff competition from Google's AI tools, which attract customers due to their higher accuracy and trustworthiness, further intensifying market competition.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 388.640
Low
305.00
Averages
374.25
High
400.00
Current: 388.640
Low
305.00
Averages
374.25
High
400.00
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.
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- S&P 500 Performance Analysis: Despite the S&P 500 reaching new highs recently, over 60% of its stocks remain below their 50-day and 200-day moving averages, a phenomenon historically associated with market tops, suggesting potential bubble risks in the current environment.
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