Forget Consensus Estimates. How Google Cloud's 'Bogey' Could Move The Stock.

Core Insights - Google-parent Alphabet is expected to report strong third-quarter earnings, particularly in its cloud computing segment, which could significantly impact its stock price [1][2] - Analysts project an 8% increase in earnings per share to $2.28 and a 13% rise in revenue to $99.9 billion, with Google Cloud revenue anticipated to grow by 29% to $14.65 billion [2][3] Financial Performance - The bogey number for Google Cloud growth is set higher than the projected 29%, indicating that institutional investors expect more robust performance [2][3] - Combined revenues for AWS, Azure, and Google Cloud are projected to reach $66.2 billion in Q2 2025, translating to an annualized revenue run-rate of $265 billion [4] Market Trends - Demand for core cloud infrastructure services has reportedly increased, with significant growth in GPU compute demand, benefiting Google's cloud business amid the AI boom [3] - New customers for Google Cloud include prominent companies like OpenAI and Meta Platforms, indicating a growing market presence [5] Capital Expenditure - Google has revised its capital spending expectations for 2025 to $85 billion, up from $75 billion, reflecting a 62% increase compared to a previous forecast of 43% [4] Stock Performance - Google stock has seen a 41% increase in 2025, reaching an all-time high of 256 on September 19, surpassing a $3 trillion valuation milestone [6] - The Relative Strength Rating for GOOGL stock is currently at 91, indicating strong performance relative to other stocks [7] - GOOGL holds an IBD Composite Rating of 98, suggesting it is among the top growth stocks [8]