Alphabet Earnings Preview: Can Cloud Growth Counter Rising AI Search Competition?

In recent days, Alphabet (NASDAQ:)’s stock price shows that buyers are aiming to push it back toward its all-time high of around $207 per share. The upcoming quarterly earnings report, expected after today’s US market close, could help drive that move if the results are strong.

The tech giant’s earnings will offer key insights into how it’s handling rising competition in AI and search. However, the market is optimistic ahead of the report. If Alphabet beats expectations again, bulls may take control through the end of July, assuming broader economic conditions remain supportive.

Investors are also watching the outcome of Alphabet’s antitrust cases, especially those involving the Chrome browser. A court decision is expected next month, and one possible outcome could be a forced sale of Chrome. However, this risk appears to be at least partly reflected in the stock’s current price.

Alphabet’s Fundamentals Remain Strong, but Headwinds Persist

Advertising is still Alphabet’s main source of revenue, but relying too heavily on it carries risks—especially with growing competition in search from generative AI tools. To reduce this dependence, the company is using its strong free cash flow to invest in artificial intelligence.

A key focus is Google Cloud, Alphabet’s flagship AI offering. With its experience, resources, and vast data, Alphabet is well-positioned to lead in this space. Google Cloud revenue is expected to grow 26% in 2025, reaching $13.12 billion.

YouTube also remains a valuable asset, offering a large user base and steady revenue that adds stability to the business.

In short, investors should watch how Alphabet grows revenue not just from advertising, but also from AI, where spending is likely to rise in the coming years—alongside tracking core financial metrics.

The Bar Keeps Rising for Alphabet

In recent years, Alphabet has reported a consistent streak of rising earnings per share (EPS), with the last quarter showing a strong performance that included an EPS surprise of nearly 40%. This quarter, EPS is expected to be lower year-on-year, but we should still see solid quarter-on-quarter growth—unless there are any unexpected developments.

Revenue is also expected to continue its upward trend and could surpass $94 billion if results come in above expectations.

Is $200 the Next Stop for Alphabet?

The uptrend in Alphabet (Class A) stock appears to be gaining momentum, as shown by the steeper slope of the current short-term trend line. If the market reacts positively to the upcoming earnings report, the first key target for buyers is likely the psychological level of $200 per share.

From a technical perspective, the all-time high near $206 per share could act as resistance and trigger at least a temporary pullback if tested. On the downside, the key support levels to watch are the rising trend line and the $180 mark.

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