Alphabet Inc. is set to release Q1 earnings with expected growth, but facing challenges in cloud market

From Nasdaq: 2025-04-22 10:55:00

Alphabet Inc. (GOOGL) is scheduled to release first-quarter 2025 results on April 24. The Zacks Consensus Estimate for earnings is $2.01 per share, with a 6.35% year-over-year growth. Revenue is estimated at $75.53 billion, showing 111.75% growth from the previous year.

Alphabet’s upcoming results are expected to benefit from strong momentum in search and cloud businesses. Gen AI capabilities have seen significant growth, with Google Cloud solidifying its position as the third-largest provider in the cloud infrastructure market.

Despite a decline in GOOGL shares by 22.1% year to date, the company is facing challenges in the cloud market due to a lack of capacity. This may impact Google Cloud revenues until new capacity comes online in 2025.

Alphabet’s GenAI capabilities and dominant position in the search engine market present growth opportunities. However, the company’s stretched valuation and competition in the cloud space make GOOGL shares risky for investors. It currently holds a Zacks Rank #3 (Hold).

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For more detailed information and analysis, including stock analysis reports for Amazon.com Inc. (AMZN), Microsoft Corporation (MSFT), Oracle Corporation (ORCL), and Alphabet Inc. (GOOGL), visit Zacks Investment Research.



Read more at Nasdaq: Should You Buy, Sell or Hold Alphabet Stock Before Q1 Earnings?