To The Moon

Overview

$Alphabet(GOOG)$ - one of the world’s largest companies and a member of the “Magnificent 7”, dominates the internet search market with nearly 90% global share.

It still generates most of its revenue from traditional search and its Chrome browser, used by nearly 3.5 billion people.

The good news is other parts of the business are increasingly driving growth in their own strides, especially (i) Google Cloud and (ii) AI products.

Its latest quarterly earnings released on 29 Oct 2025, highlighted GOOG’s strong business momentum and AI-driven growth.

Q3 2025 statistics

• Employees: 190,167

• Revenue: $102.35 billion (GOOG’s first quarter above $100 billion)

• Earnings per share (EPS): $2.87

• Net income: $34.9 billion

• Stock price: $281.82 (as of 31 Oct 2025)

• Market cap: $3.4 trillion

Google Cloud & Artificial Intelligence.

Google Cloud ranks among the largest cloud providers, behind $Amazon.com(AMZN)$ AWS and $Microsoft(MSFT)$ Azure.

Known as hyperscalers due to their massive scale, these 3 tech giants rapidly meet shifting demand.

Furthermore, GOOG Cloud is evolving from traditional data storage into a high-performance AI infrastructure provider, powered by advanced chips tailored for AI workloads.

At the same time, GOOG is making a strong comeback in AI conversational apps, competing head-to-head with Sam Altman’s OpenAI - ChatGPT.

AI Competition & Product Updates

• ChatGPT’s launch on 30 Nov 2022, popularized AI.

• GOOG’s first AI chatbot, Bard, underperformed.

• Undeterred, its reboot Gemini became a top app and even briefly surpassed ChatGPT in downloads.

• During GOOG’s latest earnings call, CEO S. Pichai announced Gemini has 650 million active monthly users (AMUs) and 75 million daily active users (DAUs) across Gemini and AI Mode.

GOOG - Cloud Growth Metrics (2025)

Revenue:

• Q3 2025: $15.2 billion (up +34% YoY)

• Q2 2025: $13.6 billion (up +32% YoY)

• Q1 2025: $12.3 billion (up +28% YoY)

Operating margin:

• Q3 2025: 23.7%

• Q2 2025: 20.7%

• Q1 2025: 17.8%

• Backlog: $155 billion, up from $106 billion last quarter.

The strong demand is driven not only by server use but also by GOOG’s own AI chips (Trillium/TPUs), integrated with their TensorFlow software.

TPUs offer cost-effective, energy-efficient AI processing within GOOG’s ecosystem, complementing $NVIDIA(NVDA)$’s dominant chips.

Financial and Analyst Insights

$Bank of America(BAC)$ noticed the GOOG’s changes, mentioned above.

And BAC’s analysts just reset their GOOG forecast after Q3 earnings, highlighting:

• Google search remains strong, with +15% YoY growth in Q3 revenue, countering concerns about AI chatbots reducing search traffic.

• In Q3 2025, paid clicks rose +7% vs +4% in Q2 2025, suggesting AI is expanding search usage.

• Strong momentum in GOOG Cloud and Trillium chips adds to revenue growth visibility.

• BAC raised GOOG’s earnings forecast by +4% for 2026 and +7% for 2027, effectively raising the stock price target to $335, from $280 per share.

• Analysts view Alphabet as well positioned in AI with its (a) leading large language model (LLM), (b) proprietary chip tech, and (c) massive user base.

While ChatGPT remains a formidable competitor, multiple companies can benefit from growing AI capabilities; that includes Perplexity.ai & Deepseek too !

S&P 500 - past month performance

With US market experiencing a pull back for the past 3 days (see above), the opportunity to buy / add GOOG to one’s portfolio becomes a lot more compelling !

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

Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks.

• US Market Cont'd To Fall This November ? Thu, 06 November. Idea post.

• S&P 500 vs AVGO. Which Is A Better Buy ? Wed, 05 November. Idea post.

• Meta Q3 Earnings Show Mistake Repeating ! Tue, 04 November. Idea post.

• Do you think GOOG is making all the right moves, positioning the company for future growth ’?

• Do you think BAC made the right call to revise GOOG’s price target higher ?

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