Is Google stock a buy before next earnings?

Core Viewpoint - Google stock is positioned strongly ahead of its February 4 earnings report, with an 8.94% year-to-date rally to $341.85, despite a general slip in the Dow Jones Industrial Average [1][3] Group 1: Business Performance - Alphabet has shown growth across most divisions, with its Gemini AI platform capturing approximately 20% of the market share from ChatGPT [4] - The core 'Search' business has stabilized, maintaining a dominance close to 90% by February 2026 after previous market share losses [5] - Alphabet has resolved its antitrust issues with Epic Games and secured an $800 million deal related to Unreal Engine, while Waymo successfully closed a $16 billion fundraising round [6] Group 2: Earnings Expectations - Wall Street anticipates Alphabet's earnings per share (EPS) to rise to $2.58 in Q4, a 14.2% increase from the $2.26 forecasted for Q3, reflecting strong analyst optimism [7][8] - A significant surprise in the last quarter was noted at 27% with an EPS of $2.87, indicating that exceeding the consensus by at least 11% is necessary to maintain positive momentum [8][9] - To ensure a rally, Alphabet would need to report an EPS of at least $3.28, matching the previous quarter's surprise [9] Group 3: Industry Risks - The AI sector's overall state poses potential risks, with recent cautious headlines indicating possible instability [12] - Concerns regarding production constraints and energy bottlenecks could leave new data centers underutilized, with sustainability issues arising from high power demands [15] - The rising number of canceled data centers reflects an apparent overreach in promises made by big tech, contributing to the sector's high valuations [16]