Alphabet’s Google Cloud revenue surged 33% in the last year, with a backlog of $155 billion. The company plans $90 billion in capital expenditures but maintains substantial cash reserves. Analysts set price targets for Alphabet stock at $336 and $340, representing a 20% increase. Google Cloud’s growth is a key driver.

Google Cloud’s revenue hit $15.15 billion in the third quarter, up 33% annually. Operating income rose to $3.59 billion. The segment’s backlog grew 46% to $155 billion. Alphabet plans capital expenditures of $91-93 billion in 2025. CEO Sundar Pichai highlighted Google Cloud’s AI advancements and growth potential.

Google Cloud competes with AWS and Azure in the data center market, holding 13% market share. The global data center market is projected to reach $652 billion by 2030. With strong revenue and operating income growth, Google Cloud is positioned for market share expansion. Alphabet’s advertising revenue supports Google Cloud’s growth.

Alphabet’s advertising business, generating $74.18 billion, fuels Google Cloud’s expansion. Despite high capital expenditures, Alphabet maintains a $23.2 billion cash reserve. Analysts see a 20% stock price increase as likely. Consider top stock picks beyond Alphabet for potential high returns. Join Stock Advisor for expert recommendations.

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