Alphabet (NASDAQ: GOOGL) struggled behind tech peers but saw a shift in investor sentiment before Q2 2025 earnings. Revenue surged to $96.43 billion, beating estimates, with strong growth in advertising and cloud services. Google Search surpassed expectations at 11.7%, easing concerns about AI threats to search dominance.

Alphabet’s AI integration, Subscriptions growth, and $85 billion CapEx guidance for AI and cloud support were highlights of the quarter. Despite “Other Bets” reporting a loss, the company’s overall performance and pivot towards AI signal a strong quarter and potential lasting turnaround.

Alphabet’s Q2 report showed strength in advertising, cloud, and search, confirming a positive trend. Trading above its 200-day moving average, the stock received raised price targets from Guggenheim and Stifel Nicolaus. With strong earnings and business reacceleration, Alphabet’s comeback is well underway, catching the attention of investors.

Read more at Nasdaq: Alphabet’s Breakout Quarter Signals a New Leadership Phase