Alphabet set to report Q4 earnings in test of stock's rally amid Google's AI wins
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Alphabet set to report Q4 earnings in test of stock's rally amid Google's AI wins
"The projected jump in revenue is expected to be spurred by a more than 35% rise in Google Cloud revenue to $16.2 billion. Google Services - the segment including ad revenue from Search and YouTube, which accounts for the majority of Alphabet's revenue - is estimated to see revenue climb a more modest 13% from the previous year to $94.9 billion, per Bloomberg consensus estimates. Alphabet stock could rise or fall as much as 5% following its fourth quarter report, according to Bloomberg data."
"Alphabet is positioned to boast "the highest quality top-line AI acceleration stories in the public universe," Raymond James analyst Josh Beck wrote in a late-January note to clients, upgrading the stock's rating to a Strong Buy from Outperform. He pointed to Google's advantage as a full-stack AI provider, as the company has begun selling its AI chips, called TPUs, to external customers rather than reservin"
Alphabet will report fourth-quarter results after the bell on Wednesday. Bloomberg-tracked analysts expect revenue to rise more than 15% to $111.4 billion and earnings per share to increase to $2.65 from $2.15 year-over-year. Google Cloud revenue is projected to grow over 35% to $16.2 billion, while Google Services revenue, which includes Search and YouTube ads, is estimated to climb about 13% to $94.9 billion. The stock could move roughly 5% following the report. Shares have risen about 25% since the prior quarter amid AI deals, Gemini 3 performance, and a landmark Apple agreement. Raymond James cited Google's full-stack AI advantage and TPU sales to external customers in upgrading the stock.
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