Alphabet

Google’s founders, Larry Page and Sergey Brin, openly acknowledged Warren Buffett as an inspiration in their IPO prospectus. Now, Berkshire Hathaway has revealed a $4.3 billion stake in Alphabet, Google’s parent company, marking a significant foray into technology beyond Apple. This investment, driven by Alphabet’s strength in AI and cloud computing, signals a potential shift in Berkshire’s strategy. Buffett previously regretted not investing in Google and Amazon sooner. Notably, Google’s founders mirrored Buffett’s long-term vision, evident in their dual-class stock structure.

Tech giants like Meta, Amazon, Alphabet, and Microsoft report strong digital ad revenue growth, defying economic anxieties. Meta leads with a 26% surge, driven by AI-enhanced ad targeting. Amazon’s ad unit grew 24%, surpassing its AWS cloud unit. Alphabet’s ad sales rose 13%, while Microsoft’s search advertising increased 14%, boosted by AI. Despite increased AI investments, some investors question the monetization strategies of companies like Meta. The upcoming holiday season’s impact on ad budgets is a key factor to watch.

Alphabet’s Q3 earnings report exceeded expectations, sending shares up 4%. Revenue hit $102.35 billion, a first for the company. Increased capital expenditure, now projected at $91-93 billion, reflects investment in AI infrastructure and Google Cloud’s growth. Google Cloud backlog reached $155 billion. Analysts see Alphabet addressing AI concerns and revised price targets upwards, with Goldman Sachs setting a $330 target and JPMorgan $340, highlighting confidence in Alphabet’s execution and AI’s positive impact on Google Search revenue.

Alphabet’s Q3 earnings exceeded expectations, driving shares up 5% after-hours. Revenue reached $102.35 billion, with EPS at $3.10. Google Cloud’s revenue grew 35% to $15.15 billion, fueled by AI demand. Alphabet is increasing 2025 capital expenditure to $91-93 billion. YouTube ad revenue hit $10.26 billion, and overall ad revenue was $74.18 billion. Net income surged to $34.97 billion, despite a $3.45 billion EU antitrust fine. Cloud customer base growth is high, and AI product use is increasing.

Alphabet (GOOG) plans a significant increase in capital expenditure in 2026, driven by soaring AI demand and a large customer backlog. This follows a strong Q3, exceeding $100 billion in revenue. 2025 capital expenditure is projected at $91-$93 billion, up from previous forecasts, to expand data centers and AI infrastructure. Google Cloud’s backlog grew 46% quarter-over-quarter. The company is also using AI to enhance its search business, with AI Mode gaining considerable traction among users. Meta is similarly increasing its capital expenditure, highlighting industry-wide AI investment.

Alphabet (GOOGL) anticipates strong earnings, fueled by a 38% Q3 stock surge and AI optimism. Investors are focused on Alphabet’s AI competitiveness amidst rivals like OpenAI. A favorable antitrust ruling, though mandating data sharing, is viewed positively. Analysts expect Gemini AI models to drive growth in Search and Cloud. Despite AI competition like ChatGPT, Google promotes Gemini as a comprehensive solution. Investors eye the launch of Gemini 3, but competitive pressures in AI remain a key concern for Google’s long-term success.

Alphabet has reached a $3 trillion market capitalization, joining a select group of tech giants. This milestone was fueled by a favorable resolution to a major antitrust case, where penalties were less severe than expected, boosting investor confidence. Alphabet’s stock is up over 30% year-to-date, significantly outperforming the Nasdaq. CEO Sundar Pichai navigates the company through AI disruption and regulatory scrutiny. The rise of AI search alternatives and the success of Gemini, Alphabet’s AI suite, are crucial for the company’s future competitiveness.

Alphabet’s stock surged to a record high after a U.S. court ruling favored Google, allowing it to retain Chrome, Android, and its practice of paying Apple to be the default search engine. Analysts revised their outlook, with JPMorgan Chase and Bank of America raising price targets. Apple’s stock also benefited due to continued payments from Google. The decision removes regulatory uncertainty, enabling Google to maintain dominance and pursue AI innovation, solidifying its position in the tech landscape; however, ongoing antitrust concerns remain a risk.