Buy, Sell or Hold GOOGL Stock Before Q3 Earnings? Here's What to Know

Core Insights - Alphabet (GOOGL) is expected to report third-quarter 2025 results on October 30, with earnings estimated at $2.27 per share, reflecting a 7.1% year-over-year growth despite a slight decrease from previous estimates [1][2] - Revenue for the third quarter is projected at $84.57 billion, indicating a 13.4% increase compared to the same quarter last year [1][9] Earnings Estimates - The Zacks Consensus Estimate for third-quarter 2025 earnings has decreased from $2.30 to $2.27 over the past 30 days [2] - The consensus estimate for Google Cloud revenues is pegged at $14.66 billion, representing a 29.1% growth year-over-year [11] Market Position and Growth Drivers - Alphabet holds a dominant 90.4% market share in the search market, significantly ahead of competitors like Microsoft Bing [5] - The integration of AI in search is enhancing user engagement, with users generating queries twice as long as traditional searches [6] - Google Cloud is the third-largest provider in the cloud infrastructure market, gaining market share alongside Microsoft [10][11] AI and Cloud Developments - AI-powered features in Google Search are driving deeper engagement and are now available in over 200 countries and regions [22] - Google Cloud's partnerships, including those with NVIDIA and various organizations for upcoming Olympic events, are expected to bolster its market position [23][24] Regulatory Environment - Recent favorable rulings in antitrust lawsuits have eased regulatory pressures on Alphabet, positively impacting its business prospects [25] Stock Performance - GOOGL shares have increased by 34.7% year-to-date, outperforming both the Zacks Internet Services industry and the Zacks Computer & Technology sector [13] - The stock is currently trading at a premium, with a forward price/sales ratio of 8.31 compared to the industry average of 6.53 [16]