Alphabet(US:GOOGL) 智通财经网·2025-10-22 09:33Core Viewpoint - Google is expected to report strong third-quarter earnings on October 29, with Bank of America maintaining a "Buy" rating and raising the target price from $252 to $280, driven by anticipated revenue growth and increased advertising spending [1][2]. Group 1: Third Quarter Performance - Bank of America forecasts third-quarter revenue of $86 billion and earnings per share (EPS) of $2.17, slightly below market expectations of $85 billion and $2.29, with a search growth rate of 12% compared to the market's 11% [1][2]. - The anticipated increase in advertising spending is attributed to improved macroeconomic conditions, increased data usage, and a rise in advertising expenditures, which may offset a decline in organic search traffic [1][3]. - Operating expenses are estimated at $29.6 billion, with an operating margin expected to decline by 259 basis points year-over-year to 35.7%, although this may improve when excluding one-time legal expenses [1][3]. Group 2: Fourth Quarter Outlook - For the fourth quarter, Bank of America projects revenue and EPS of $93.8 billion and $2.59, exceeding market expectations of $92.7 billion and $2.55, with a search growth rate assumption of 12% and a slight decline in YouTube growth to 12% [2][3]. - The performance of Google in the third quarter is expected to influence market expectations for the fourth quarter, particularly in comparison to Meta and Microsoft, which will be reporting on the same day [2]. Group 3: Potential Upsides and Risks - Potential upsides for the third-quarter earnings call include rising advertising growth expectations due to favorable macroeconomic conditions and advancements in AI technology, as well as strong search metrics indicating effective execution through AI transformation [3]. - Risks include the possibility of search performance meeting or falling short of expectations, a slowdown in paid click growth, and lower advertising growth compared to Meta, along with uncertainties regarding fourth-quarter comments and increased capital expenditures [3].