Alphabet Inc. (GOOGL) is trading at all-time highs, thanks to artificial intelligence and cloud initiatives. The stock hit an all-time high of $210.52 on Aug. 25, 2025. Google Cloud is benefiting from accelerated growth across AI infrastructure and Generative AI Solutions. AI Overviews now reach more than 2 billion users per month.It is now driving over 10% more queries globally. Alphabet’s Q2 results confirmed Google Search, YouTube, and Cloud as dependable growth drivers, while heavy AI investments are al ...

A month has gone by since the last earnings report for Alphabet (GOOGL) . Shares have added about 3.9% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Alphabet due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.Alphabet Q2 Earnings ...

Investment Rating - The report maintains a "Positive" investment rating for the industry [9]. Core Insights - Alphabet's Q2 2025 financial results show revenue of $96.43 billion, a year-on-year increase of 13.8%, and a net profit of $28.2 billion, up 19.4% [2][6]. - The company's capital expenditure (Capex) guidance for the year has been raised by $10 billion to $85 billion, with Q2 Capex reaching $22.4 billion, reflecting a year-on-year increase of 70% and a quarter-on-quarter increase of 31% [6][10]. - Strong demand in the cloud business is evidenced by a backlog of orders reaching $106 billion, with significant growth in high-value contracts [10]. - The monthly average token usage for AI applications has doubled from 48 trillion in May to 98 trillion, indicating explosive growth in AI product engagement [10]. Summary by Sections Financial Performance - Alphabet reported Q2 2025 revenue of $96.43 billion, a 13.8% increase year-on-year, and a net profit of $28.2 billion, up 19.4% [2][10]. - Google Services generated $82.5 billion in revenue, a 12% increase, while Google Cloud revenue reached $13.62 billion, growing 32% with a significant operating profit increase [10]. Cloud Business Insights - Google Cloud's operating profit surged to $2.83 billion, a 141% year-on-year increase, with a profit margin of 20.7%, up 9.4 percentage points [10]. - The number of new customers for Google Cloud Platform (GCP) increased by nearly 28% quarter-on-quarter, with high-value orders (over $2.5 billion) doubling year-on-year [10]. AI Developments - Monthly token processing for AI applications increased from 48 trillion in May to 98 trillion, marking a 100% growth [10]. - The Gemini application has reached 450 million monthly active users, with a 50% increase in daily requests compared to Q1 [10]. Capital Expenditure and Industry Trends - Alphabet's capital expenditure for 2025 has been revised to $85 billion, with Q2 spending at $22.4 billion [6][10]. - Major tech companies, including Meta, Microsoft, and Oracle, are significantly increasing their investments in AI infrastructure, indicating a competitive arms race in the North American cloud market [10].

Core Viewpoint - Alphabet Inc (NASDAQ: GOOGL) is set to announce its second-quarter results soon, with current trading showing a slight decline despite recent price-target increases from analysts [1]. Stock Performance - GOOGL shares are experiencing a potential end to a nine-day winning streak, having reached their highest level since February before reversing gains, with a year-over-year increase of 4.8% [2]. - The stock has shown resilience, bouncing off a support level at $170, guided by the 40-day moving average [2]. Earnings History - Historically, GOOGL has had a mixed performance following earnings reports, with four out of the last eight reports resulting in gains and four in losses, including a notable 10.2% increase after the April 2024 earnings [3]. - The average next-day price swing for GOOGL over the past two years has been 6.2%, while the current options market is anticipating a larger move of 8.3% [3]. Options Market Sentiment - Options traders are showing optimism ahead of the earnings announcement, with a call/put volume ratio of 3.29 at major exchanges, indicating a higher level of bullish sentiment compared to 75% of the past year's readings [4].

Core Insights - The Trade Desk Inc. (TTD) will join the S&P 500 on July 18, 2025, replacing ANSYS Inc. (ANSS), which is being acquired by Synopsys Inc. (SNPS) [1] - Following the announcement, TTD shares rose by 6.6% to $80.40, indicating strong investor sentiment [1] - TTD operates a leading demand-side platform (DSP) focused on data-driven advertising, aiming for revenue growth and profitability through its Connected TV (CTV) offerings and flagship products [2] Company Overview - TTD is positioned to benefit from the projected growth in the global digital ad spending market, expected to reach $1,483 billion by 2034, with a CAGR of 9.47% from 2025 to 2034 [3] - The company is focusing on expanding its global footprint and partnerships while maintaining its innovation edge [2][3] Financial Performance - For Q2, TTD anticipates revenue of at least $682 million, reflecting a 17% year-over-year growth, despite macroeconomic challenges [4][10] - Adjusted EBITDA is projected to be around $259 million [4] - TTD's shares have increased by 59.9% over the past three months, outperforming the Zacks Internet-Services industry and S&P 500 composites, which rose by 20.6% and 18.2%, respectively [11] Competitive Landscape - TTD competes with major players like Amazon (AMZN) and Alphabet (GOOGL) in the ad tech space, focusing on independent, cross-channel programmatic buying [5][7] - While Amazon leverages its first-party data for targeted ads, TTD offers a neutral ad platform targeting the open internet, which is particularly relevant in ad-supported streaming [7] Valuation Metrics - TTD currently trades at a forward price-to-sales ratio of 12.57X, significantly higher than the industry average of 5.44X [12] - The Zacks Consensus Estimate for TTD's earnings has remained stable over the past 60 days, with no revisions [13][14]

Core Insights - The company is considered undervalued at current trading levels, even when assuming no further growth in its significant services segment [1] Group 1 - The analysis indicates that the company appears to be trading in the German Buy-Hold-Check investor category [1] - The author possesses a master's degree in engineering and management, which aids in understanding and interpreting the economics and technology of companies [1]

Core Viewpoint - The recommendation to buy the dip in Alphabet/Google (NASDAQ: GOOGL) remains unchanged despite the stock's underperformance since March 8 [1]. Group 1: Company Performance - Alphabet/Google has shown leadership in several sectors, indicating potential for recovery and growth [1]. Group 2: Analyst Background - The analyst has a background in IT and has been managing a family portfolio for seven years, which has led to a deep understanding of risk and reward in investments [1]. - The analyst aims to provide clear and accessible insights for investors of all experience levels, leveraging their IT background to navigate technology stocks [1].

Core Insights - Google (NASDAQ: GOOG) reported first quarter results for FY25 that exceeded Wall Street analysts' expectations, indicating strong performance and potential growth opportunities [1]. Financial Performance - The earnings release highlighted significant financial metrics that surprised analysts, suggesting a positive trend in revenue and profitability for the company [1]. Market Position - The company continues to maintain a competitive edge in the market, with analysts noting its ability to outperform expectations amidst a challenging economic environment [1]. Investment Opportunities - The results may present potential investment opportunities for stakeholders, particularly in light of the company's strong fundamentals and market positioning [1].