Alphabet Stock Investors: Circle This Date in Your Calendar

Core Insights - Alphabet is expected to report strong third-quarter results on October 29, driven by growth in Google Search and Google Cloud, particularly due to advancements in AI [2][12] - The company has successfully integrated AI into its services, alleviating initial concerns about competition from AI chatbots [3][4] Google Search Performance - Google Search generated $54.2 billion in revenue during Q2 2025, reflecting an 11.7% year-over-year increase, up from 9.7% in Q1 [6] - The introduction of AI Overviews in Google Search has enhanced user experience and attracted advertising revenue at rates comparable to traditional ads, with over 2 billion users monthly [5][4] Google Cloud Growth - Google Cloud, while generating less revenue than Google Search, is central to Alphabet's AI strategy and is a preferred platform for AI development among startups [7] - The cloud segment achieved a record $13.6 billion in revenue in Q2, marking a 32% year-over-year growth, an acceleration from 28% in Q1 [9] - A significant order backlog of $106 billion at the end of Q2 indicates strong demand for Google Cloud services, growing by 38% [10] Financial Metrics - Alphabet's earnings per share for the first half of 2025 reached $5.12, a 35% increase year-over-year [12] - The stock is trading at a price-to-earnings (P/E) ratio of 25.6, making it one of the cheapest among its peers in the tech sector [13] Investment Outlook - Given the positive trends in revenue growth and profitability, Alphabet's stock is viewed as a potentially attractive investment ahead of the earnings report [11][15]