Copyright Investor's Business Daily
Google parent Alphabet (GOOGL) on Wednesday delivered third-quarter earnings and revenue that handily beat consensus estimates while internet search advertising and cloud computing revenue came in above expectations. Google stock popped on the news. Reported after the market close, Google earnings for the quarter ending Sept. 30 rose 35% to $2.87 per share. The tech giant reports Google earnings under generally accepted accounting principles, also known as GAAP. In Q3, Google's gross revenue rose 16% to $102.35 billion. Analysts polled by FactSet had projected EPS of $2.26 on revenue of $99.94 billion. Google Earnings: Search Results Also, Google's Q3 internet search-advertising revenue came in at $56.57 billion versus estimates of $55.05 billion. Further, Google reported cloud-computing revenue of $15.16 billion versus estimates of $14.70 billion. Meanwhile, YouTube ad revenue was $10.26 billion versus estimates of $10 billion. On the stock market today, Google stock gained over 5% to 288.59 in extended trading. Heading into the Google earnings report, shares had advanced over 43% in 2025, rebounding from a rough start. Google Stock: OpenAI Competition Potential disruption of Google's core internet search business amid the emergence of generative artificial intelligence and new rivals such as OpenAI remains an issue for Google stock. OpenAI recently unveiled an AI-powered web browser called ChatGPT Atlas and is expected to add advertising. Google began deploying AI Overviews in the U.S. in mid-2024, with conversational summaries topping links for many search queries. The long-range question is how Google search ad revenue growth will be impacted by the AI Overviews format. Google is among AI stocks to watch. In September, a federal judge ruled that no Google asset divestitures will be required as part of remedies in an antitrust case involving the tech giant's internet search business. The IBD Methodology: How To Invest In Stocks While Managing Risks GOOGL Stock Technical Ratings Also, Google stock owns an Accumulation/Distribution Rating of B-plus. The institutional ownership rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral. Further, Alphabet stock holds an IBD Composite Rating of 98 out of a best possible 99, according to IBD Stock Checkup. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better. Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, quantum computing, cybersecurity and cloud computing. YOU MAY ALSO LIKE: Why Did Nvidia GTC News Spook Quantum Computing Stocks? Learn The Best Trading Stock Rules From IBD's Investor's Corner Want To Trade Options? Try Out These Strategies Monitor IBD's 'Breaking Out Today' List For Companies Hitting New Buy Points
