Alphabet Earnings Preview: AI Momentum Could Spark a 6% Stock Move

Alphabet Earnings Preview: AI Momentum Could Spark a 6% Stock Move

Alphabet, the parent company of Google, is poised to release its quarterly earnings report after the market closes on Wednesday. Expectations among Wall Street analysts indicate that the company will deliver substantial revenue growth. Current options pricing reflects that traders anticipate a potential stock movement of approximately 6% in either direction following the announcement.

As of Tuesday’s close at around $268, this predicted shift could see Alphabet’s stock reach new heights near $283 or dip toward $252. Historically, the stock has seen modest fluctuations following earnings reports, typically ranging between 1% to 3% increases after three of the last four quarterly announcements. However, a notable drop of 7% occurred after the February report when the company disclosed significant spending plans.

For investors, this earnings release holds considerable importance, especially as Alphabet continues to pursue advancements in artificial intelligence. The anticipation for a significant stock movement suggests a divided sentiment among investors, with both optimism and caution in play.

In 2025, shares of Alphabet have surged more than 40%, marking it as one of the standout performers among the “Magnificent 7,” only behind Nvidia, a favorite among AI enthusiasts. Analysts remain predominantly optimistic, with 12 out of 15 current ratings being “buy” recommendations, despite the stock already exceeding its average target of $254.

For the third quarter, expectations are for Alphabet to report an earnings per share of $2.26, alongside a notable 13% increase in revenue to approximately $99.9 billion, according to consensus estimates. As the company continues to innovate and lead in technology, stakeholders are hopeful for continued success and growth in the coming quarters.

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