Alphabet (NAS100: GOOG) is set to report its fourth quarter results after the bell on Wednesday, with optimism from Wall Street analysts over its AI advances.
GOOG – Daily Chart
The price of GOOG has found some sellers ahead of the earnings, with the first key support level at $328.55 if earnings disappoint.
Analysts surveyed by Bloomberg expect the company’s revenue to climb more than 15% to $111.4 billion and earnings per share to increase to $2.65 from $2.15 over the last year. The projected jump in revenue is expected to be boosted by a more than 35% rise in Google Cloud revenue to $16.2 billion.
Google Services is the company segment that includes ad revenue from Search and YouTube. That is estimated to show a more modest revenue increase of 13% from the previous year to $94.9 billion, Bloomberg added.
The stock has risen 25% since the tech firm’s last earnings report, after a series of AI deals with Meta, Anthropic, and OpenAI for its cloud division. The release of the company’s Gemini 3 AI model outperformed competitors and prompted rival OpenAI to declare it a “code red” moment.
Analysts will also be looking for confirmation of a landmark deal with Apple, which could give more clues on potential revenue. Alphabet has outperformed the “Magnificent Seven” group of Big Tech stocks, which are down a collective 3% over that period, with Microsoft down 24%.
Alphabet’s shares will also come amid jitters in the tech market after Donald Trump’s nomination of Kevin Warsh as Fed Chair, while software stocks have been under pressure due to weakness in private debt markets.
The S&P 500 lost -0.84%, and markets will look to the continuation of earnings season this week.
