Key Stats for Alphabet Stock
- Price Change for Alphabet stock: 7%
- Current Share Price as of Oct. 29: $275
- 52-Week High: $275
- $GOOGL Stock Price Target: $263
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What Happened?
Alphabet (GOOGL) stock surged over 6% after it reported Q3 earnings that crushed Wall Street expectations.
The company posted adjusted earnings per share of $3.09, beating expectations of $2.27, while revenue came in at $102.35 billion, above estimates of $100.14 billion.
This marked Alphabet’s first-ever $100 billion revenue quarter—a significant milestone that underscores the company’s growing scale.
Just five years ago, Alphabet’s quarterly revenue sat at $50 billion. The business has doubled in size since then, driven largely by the explosion in AI demand.
Google Cloud was the standout performer, delivering $15.15 billion in revenue and beating estimates of $14.74 billion.
That represents a 35% jump from the same period last year. Even more impressively, Cloud’s backlog soared 46% quarter over quarter to $155 billion, signaling massive pent-up demand for Google’s AI infrastructure and services.
CEO Sundar Pichai revealed that Google signed more deals worth over $1 billion in the first nine months of 2025 than it did in the previous two years combined.
One example: Google landed a $10 billion cloud contract from Meta in August spanning six years. Over 70% of existing Google Cloud customers now use the company’s AI products, showing strong traction with enterprise clients.
GOOGL stock investors also got encouraging news about the company’s core search business. Search revenue climbed 15% year over year to $56.56 billion, easing concerns that AI competition might be eroding Google’s dominant position.
The company’s AI Mode product within search now has 75 million daily active users in the U.S., and those queries doubled during the quarter.
YouTube advertising revenue came in at $10.26 billion, topping the $10.01 billion consensus. Google’s flagship Gemini AI app now boasts over 650 million monthly active users, up from 450 million last quarter—though still trailing ChatGPT’s 800 million weekly users.
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What the Market Is Telling Us About GOOGL Stock
The market’s positive reaction to GOOGL stock suggests investors are excited about Alphabet’s ability to monetize AI demand without sacrificing growth in its core advertising business.
GOOGL stock had already rallied 45% year-to-date before earnings, but the blowout results justified the valuation.
However, Alphabet announced it’s significantly increasing capital expenditures to meet customer demand. The company now expects to spend between $91 billion and $93 billion in 2025, up from its previous guidance of $85 billion.
CFO Anat Ashkenazi warned that spending will increase even more dramatically in 2026, though she didn’t provide specific numbers.
This marks the second time this year Alphabet has raised its CapEx outlook. The spending primarily goes toward technical infrastructure, such as data centers and AI chips.
While this level of investment raises questions about near-term profitability, Ashkenazi emphasized that the company is seeing strong returns, especially in Cloud, where demand is outpacing supply.
Alphabet also took a $3.45 billion antitrust fine from European Union regulators in September related to anti-competitive practices in its advertising technology business. This one-time charge impacted reported net income, which came in at $34.97 billion or $2.87 per share.
For GOOGL stock investors, the key takeaway is that Alphabet is aggressively investing to capture what executives believe is a generational opportunity in AI—and so far, the strategy is paying off with accelerating Cloud growth and resilient search revenue.
The Other Bets segment, which includes Waymo and life sciences unit Verily, reported $344 million in revenue but posted a $1.42 billion loss.
Waymo is expanding to new cities and announced plans to enter London and Tokyo next year, though it remains unprofitable.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
