"After a difficult stretch in which some investors worried it was falling behind in AI (artificial intelligence), Alphabet has become one of 2025's standout winners. The parent of Google Search, YouTube, and a fast-growing cloud platform has seen its stock climb about 66% year to date as enthusiasm builds around its Gemini AI models and custom data center chips. The rally has been accompanied by a clear reacceleration in its business."
"The online search giant's third-quarter revenue rose 16% year over year to $102.3 billion. While Google Services revenue increased 14% to $87.1 billion on the back of robust search and YouTube demand, the company's cloud computing business grew even faster. Third-quarter Google Cloud revenue climbed 34% year over year to $15.2 billion, and operating margin in the segment improved to 23.7% from 17.1% a year earlier as scale helped profitability."
Alphabet's AI momentum has coincided with a roughly 66% year-to-date stock gain as enthusiasm grows around Gemini models and custom data center chips. Revenue reaccelerated, with a quarter exceeding $100 billion driven by double-digit growth in search advertising, YouTube, subscriptions, and Google Cloud. Third-quarter revenue rose 16% to $102.3 billion; Google Services increased 14% to $87.1 billion while Google Cloud climbed 34% to $15.2 billion and its operating margin improved to 23.7% from 17.1%. Management reported an approximately $155 billion cloud backlog. The market faces a valuation question whether recent gains fully price expected AI-driven upside or leave room for error.
Read at The Motley Fool
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