Google stock jumps as Q3 earnings, revenue surpass Wall Street's expectations

Core Insights - Alphabet's third quarter revenue and earnings exceeded Wall Street expectations, driven by AI-related deals in its cloud segment [1][4] - The stock price increased by over 5% following the earnings report [1] Revenue Performance - Alphabet reported quarterly revenue of $102.4 billion, surpassing the expected $99.85 billion and up from $88.3 billion year-over-year [1] - Google Cloud revenue rose 34% to $15.2 billion from $11.4 billion in the same period last year, exceeding the $14.8 billion forecast by analysts [2] Growth Drivers - The growth in Google Cloud was attributed to strong enterprise demand for AI, generating "billions of dollars" in revenue during the quarter [3] - The backlog for Google Cloud reached $155 billion, indicating strong future revenue potential [2] Earnings and Expenditures - Adjusted earnings per share for the third quarter were $2.87, higher than the projected $2.27 and above the previous year's $2.12 [4] - Alphabet increased its capital expenditures forecast for the year to $92 billion, up from $85 billion, primarily for AI infrastructure [4] AI Market Position - Alphabet is positioned as a key beneficiary of the AI boom, with its Gemini AI models gaining traction and major AI developers utilizing its cloud services [5] - Notable partnerships include OpenAI and Meta, with Meta reportedly signing a $10 billion deal for Google Cloud services [6]