Alphabet (GOOGL) Posts Q3 Earnings Beat; AI Helps Boost Search and Cloud Growth

Core Insights - Alphabet Inc. has received a price target increase from TD Cowen to $335.00 from $280.00, maintaining a Buy rating following strong quarterly earnings [1][4] - The company's third-quarter earnings exceeded analyst expectations, with total revenue surpassing consensus estimates by 2.4% [1][4] - Significant growth in Search, Cloud, and YouTube segments, each beating expectations by 3% [1][4] Financial Performance - Operating income was 2.5% above estimates, with margins improving by 350 basis points year-over-year, excluding an EC fine [2][4] - The company raised its 2025 capital expenditure guidance to approximately $92 billion, up from a previous estimate of $85 billion, indicating ongoing investment in AI infrastructure [3][4] AI Impact - Management attributed growth in Search and Cloud segments significantly to advancements in artificial intelligence [3][4] - The Gemini AI platform has reached 650 million monthly active users, with queries increasing threefold quarter-over-quarter [3][4]