"Can it keep the good times rolling? When Alphabet reports its fourth-quarter earnings on Wednesday, investors will focus on AI spending, cloud wins, and a big Apple deal. With Meta projecting its capex for this year to nearly double that of 2025, how high will Google go? The company said in October that it expected capex for 2025 to land between $91 and $93 billion."
"That leads to the question of how Google's search advertising business, its core engine, is doing. Are OpenAI and other AI rivals chipping away at its dominance, or is Alphabet's money-printing machine whirring as proudly as ever? Analysts at Bernstein appeared optimistic in a note this week, writing that they expect Google to have seen an increase in query volume in Q4."
Alphabet enters Q4 earnings with investor attention on AI spending levels, cloud customer growth, and a potential large Apple deal. The company guided 2025 capex to $91–$93 billion and signaled a significant increase for 2026. Industry capex trends, including Meta's planned increase, frame investor expectations. Search-advertising performance will be evaluated to determine whether OpenAI and other AI rivals are reducing Google's market dominance. Bernstein analysts expect increased query volumes in Q4. Google reported roughly 34% year-over-year growth in new cloud customers in Q3 as the cloud business becomes central to AI infrastructure competition.
Read at Business Insider
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