Alphabet readies Q3 results, revenue expected at $128.2B, investors nervous
Alphabet (yep, Google's parent company) is about to drop its third-quarter earnings report today.
Analysts are expecting a big 25% jump in revenue compared to last year, with profits per share at $3.02 and total revenue hitting $128.2 billion, the fastest growth since 2021.
But there's a catch: heavy spending on AI has made investors nervous, leading to a 7% dip in Alphabet's stock this month.
Alphabet capex up 130% to $55.2B
Alphabet is set to spending this year, with capital expenses rising 130% in the third quarter to $55.2 billion, potentially topping $200 billion annually, according to FactSet.
On the bright side, Google Cloud is expected to grow by 90%, helping it close in on Amazon and Microsoft.
While analysts still see Google as an AI leader, they say the competition is heating up fast, especially from OpenAI and Anthropic, so Google will need some smart moves to stay ahead.