Alphabet Inc. (GOOGL) is scheduled to release its second-quarter 2025 earnings on July 23. Analysts expect earnings per share of $2.13, a 12.7% increase from last year, with revenues projected at $79.22 billion, up 11.02%. Google Search’s Gen AI technology and Google Cloud’s market share growth are expected to drive positive results.

Alphabet’s Google Cloud is gaining ground in the cloud computing market, with a 26% revenue growth forecast for the second quarter of 2025. Despite facing capacity constraints, Google Cloud remains a strong competitor against AWS and Azure. The company’s partnership with NVIDIA and recent client expansions are contributing to its growth trajectory.

Alphabet’s stock performance has lagged its sector and industry, with a 3.1% decline year-to-date. The stock is currently trading at a premium, with a forward 12-month Price/Sales of 6.43X. Technically, GOOGL shares are bullish, trading above the 50-day and 200-day moving averages.

Alphabet’s upcoming earnings report presents both opportunities and risks for investors. While the company’s Gen AI capabilities and dominant position in the Search market are positive factors, competition in the cloud space and regulatory challenges pose risks. With a Zacks Rank #3 (Hold), it may be prudent to wait for a better entry point before considering GOOGL shares.

Read more at Nasdaq: Buy, Sell or Hold Alphabet Stock? Key Tips Ahead of Q2 Earnings