To The Moon

On the eve of $Alphabet(GOOG)$’s turn to release its quarterly earnings, here’s a recap of what has taken place and what could take place.

Q2 2025 Recap.

GOOG reported its Q2 2025 on 23 Jul 2025.

Below are details compared against estimates from analysts polled by LSEG:

• Revenue: $96.43 billion vs $94 billion expected vs Q2 2024’s $84.74 billion, that’s a +13.78% YoY gain.

• Earnings per share (diluted): $2.31 vs $2.18 expected vs Q2 2024’s $1.89; that’s a +5.96% YoY gain.

• Net income: $28.19 billion vs Q2 2024’s $23.62 billion; that’s a +19.35% YoY increase.

According to StreetAccount, drilled down numbers watched by Wall Street included:

• YouTube advertising revenue: $9.8 billion vs $9.56 billion vs Q2 2024’s $8.66 billion.

• Google Cloud revenue: $13.62 billion vs $13.11 billion vs Q2 2024’s $10.35 billion.

• Traffic acquisition costs (TAC):  $14.71 billion vs $14.18 billion vs Q2 2024’s $13.39 billion.

Q3 2025 Forecast.

As for the impending Q3 2025 earnings, they are expected to have benefited from solid momentum in (a) Search and (b) Cloud businesses.

Momentum in Search is expected to have driven advertising revenues in the to-be-reported quarter.

While the Cloud business is riding on strong demand for AI infrastructure and an expanding clientele.

Below are blended estimates from various sources:

• Revenue: $84.57 billion vs Q3 2024’s $88.27 billion; that’s a -4.19% YoY decline.

• Revenue: $96.4 billion vs Q3 2024’s $88.27 billion; that’s a +9.21% YoY gain

• Earnings per share: $2.27 vs Q3 2024’s $2.12; that’s a +7.08% YoY gain and -1.73% QoQ decline.

• Net income: $28.2 billion vs Q3 2024’s $26.3 billion; that’s a +7.22% YoY gain.

Estimates for drill down numbers include:

• YouTube advertising revenue: $9.8 billion vs Q3 2024’s $8.92 billion; that will be a +9.87% YoY growth.

• Google Cloud revenue: is estimated to be $14.66 billion vs Q3 2024’s $11.35 billion, that will be a +21.96% YoY growth.

• Traffic acquisition costs (TAC):  $14.71 billion vs Q3 2024’s $13.72 billion, that will be a +7.22% YoY gain.

Looking at above forecast estimates, it looks like GOOG is going to hand in another stellar set of quarterly earnings.

Technical Analysis.

YTD, GOOG has surged +41.60% as of 27 Oct 2025, outperforming $NASDAQ(.IXIC)$ that gained +22.60% during the same time.

This follows GOOG's +35% gain in 2024.

Like the US market, GOOG has been charting new highs almost on a weekly basis.

Just last week, Alphabet hit a fresh record high of $257.58, where it encountered weekly trend channel resistance near $258.

On Mon, 27 Oct 2025 closing, GOOG has broken through the resistant over impending (a) Fed’s further interest cut announcement, later this week and (b) Trump’s social media post about the possible trade pact between US-China. (see below)

If GOOG's earnings meet and beat expectations, it can break above this weekly trend channel resistance and extend its gains towards the next upside target at $280.

Moving Averages.

• GOOG has recently formed a "golden cross" pattern, with its 50-day moving average (MA) decisively above its 200-day MA, signaling a robust uptrend. (see above)

Other Technical Advantages.

Perhaps GOOGs greatest leverage is its foothold on:

• Artificial Intelligence (current IT wave) that is being rolled out progressively by US tech giants.

• Quantum Computing (next IT wave) that is improving in its stability & processing speed by leaps and bounds.

(1) Google + Anthropic Partnership.

On 24 Oct 2025, it was confirmed that GOOG will supply up to 1 million of its specialized AI chips to Anthropic PBC. (see below)

The deal is worth tens of billions of dollars, one that deepens its partnership with the fast-growing artificial intelligence startup.

At the same time, it cements GOOG’s position as both (1) a major investor and (2) key infrastructure provider in the escalating race to power large AI models.

(2) Google + Quantum Computing.

On Wed, 22 Oct 2025 - GOOG reported a breakthrough in quantum computing (QC) after developing an algorithm that performed a task beyond the capabilities of conventional computers. (see below)

GOOG’s Willow quantum chip ran an algorithm 13,000x faster than the best classical supercomputers—an advance seen as a major step toward practical quantum applications.

GOOG has effectively demonstrated a "verifiable quantum advantage" strongly reinforcing its roadmap toward a fault-tolerant, scalable quantum machine.

Support Levels.

In the event of earnings disappointment (very unlikely), that will cause:

• GOOG share price to reject weekly trend channel resistance at $258.

• There should be support at $236.69 from the low it hit on 10 Oct 2025.

• Below that, the next support level will be $225, that is the low of the day after it gapped over +9% higher on 3 Sep 2025.

GOOG Is ‘Cheap’.

GOOG currently trades with a forward P/E in the mid-20s, that is notably lower than most of the other Magnificent 7 stocks, whose P/E ratios generally exceed 30 (except $Meta Platforms, Inc.(META)$) .

GOOG’s sales-based valuation ratios (eg. Price/Sales and EV/Sales) are also far below its big tech peers, marking it as fundamentally undervalued on multiple key metrics.

The combination of (a) attractive earnings and (b) sales multiples makes GOOG a “must-buy” standout in a crowded tech landscape where most competitors command much richer premiums, with only $Amazon.com(AMZN)$ differing due to the inherently slim margins in its eCommerce business.

With so much going on for GOOG, be it in AI or QC, what is there not to like about this Tech giant?

Remember to check out my other posts. (See below). Help to Repost ok, Thanks.

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• Quantum - Buy The Rumours, Buy WQTM ! Tue, 28 October. Idea post.

• Q3 Earnings Out, Will TSLA Hit $500 ? Mon, 27 October. Ideal post.

• Will US Market Fall Becos of CPI Data ? Fri, 24 October. Idea post.

• Do you think GOOG Q3 2025 earnings will be better than Q2 2025’s and Q3 2024’s ’?

• Do you think GOOG is worth a 2nd or even 3rd look ?

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