TLDR
- Alphabet reports third-quarter earnings after the close Wednesday, and options pricing points to a move of up to 6% by Friday.
- That range puts GOOGL between about $303 and $338, based on Friday’s close.
- Analysts expect revenue of $127.86 billion, up about 25%, with EPS of $2.96.
- Google Cloud revenue is forecast to nearly double to $29.15 billion.
- The stock is up just 2% this year, and 12 of 13 tracked analysts rate it a buy with an average target of $433.
Alphabet (GOOGL) stock heads into earnings after the close Wednesday, with options pricing a move of up to 6% by Friday. From Friday’s close, that range runs from below $303 to as high as $338.
Class C stock (GOOG) slipped about 1% on Monday. The stock is up just 2% for the year and sits well below its May record.
Traders are not expecting a quiet one. Many AI-related stocks have taken a hit lately on worries about spending.
Alphabet has kept posting solid growth through that stretch. Microsoft and Amazon also report this week, so the whole group is on the clock.
What Wall Street expects
Analysts surveyed by Visible Alpha expect third-quarter revenue of $127.86 billion. That would be growth of about 25% from a year ago.
Earnings are seen at $2.96 per share, up 9 cents. Google Cloud revenue is forecast to nearly double to $29.15 billion.
Of the 13 analysts tracked, 12 rate the stock a buy and one is neutral. The average price target of $433 implies about 35% upside from Friday’s close.
Bank of America analysts will watch Google search growth. They point to possible pressure from new AI agents, along with Google’s own agent plans.
They said search revenue could be volatile. They also said Google has moved users to AI Mode and Gemini with strong execution.
The firm believes Alphabet is well placed to lead in the AI era. It cited proprietary models, custom silicon and broad product distribution.
How Alphabet compares with Meta
Meta surprised investors last week with several negative developments. It posted negative free cash flow for the first time since 2012 and signaled heavier spending ahead.
Meta also set up a new class of nonvoting Class C stock, which works like a 2-for-1 split. Holders get one Class C for each Class A or Class B they own, with trading set for January 2027.
The structure lets Mark Zuckerberg raise outside capital without diluting his voting control. Meta stock fell about 2% on Monday.
D.A. Davidson analyst Gil Luria said Alphabet may have already had its reckoning. It did some fundraising and flagged a big capex increase when it reported the second quarter.
Luria also noted that Sergey Brin and Larry Page moved out of California before the January 1, 2026 cutoff. They may avoid having to sell their stock to cover California’s billionaire tax.
That would leave investors free to focus on Anthropic-driven growth in Google Cloud. Alphabet reports after the close Wednesday, with consensus at $127.86 billion in revenue and $2.96 EPS.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
