Alphabet’s quarterly results exceeded expectations, with strong cloud growth driving revenue of $113.8 billion, up 18% YoY. Operating margin remained at 32%, with diluted EPS of $2.82, beating analysts’ estimates. Google search revenue increased 17%, while Google Cloud revenue surged 48%, outpacing Microsoft’s Azure Cloud growth of 39%. The company plans to double its capital expenditures to capitalize on AI demand.

Investors are closely monitoring Alphabet’s AI strategy, which is driving cloud growth and increasing user engagement. The company sold over 8 million paid seats of Gemini Enterprise and has 750 million monthly active users on the Gemini app. Despite a 65% stock price increase in the past year, Alphabet is still attractively priced at less than 30 times forward earnings, making it a buy for investors.

The Motley Fool Stock Advisor team identified Alphabet as a top stock to buy now, highlighting its potential for significant returns. While Alphabet wasn’t among their top 10 picks, historical recommendations like Netflix and Nvidia have yielded substantial profits for investors. With Stock Advisor’s average return of 906%, investors can access expert insights for market-beating performance.

Read more at Nasdaq: Google Plans to Double Capex Spending as Cloud Growth Soars 48%