Alphabet is set to report Q3 results, with analysts expecting $99.85 billion in revenue, up 13% from last year. Adjusted EPS forecasted at $2.26, a 7% increase but lowest growth in over two years due to antitrust fine.

AI boom benefits Alphabet as Gemini AI models gain popularity, yet risks from AI chatbots like ChatGPT pose threats to core Search business. Stock rose but faced competition from OpenAI’s ChatGPT Atlas Web browser, causing a brief dip.

Analysts optimistic on Alphabet stock, raising price targets to $300. Positive factors like AI deals, favorable DOJ ruling, and upcoming Gemini 3 model offset concerns about OpenAI disrupting Search business. Stock up over 40% since last earnings, outperforming Big Tech peers.

Google Cloud secures deals with big AI players like OpenAI and Meta, potentially generating billions in revenue. These partnerships expected to boost Google Cloud’s revenue growth, making it the biggest driver for Alphabet in Q3. Search business revenue projected to grow 11% to $55 billion.

Investors keen on Alphabet’s AI investments, as company is expected to record $22.4 billion in capital expenditures, a 71% increase. Wall Street watches AI spending amid fears of a market bubble, raising questions on ROI in the AI ecosystem. Clarity on AI monetization and search revenue vital in upcoming earnings report. Laura Bratton, a reporter for Yahoo Finance, covers the latest technology news affecting the stock market. Stay informed on the impact of tech developments on investments by following her on Bluesky @laurabratton.bsky.social or emailing [email protected]. For more financial and business news, visit Yahoo Finance at https://finance.yahoo.com/news/.

Read more at Yahoo Finance: Alphabet set to report Q3 results as Wall Street weighs AI cloud deals, Google Search competition from OpenAI