Alphabet Surpasses Q3 Estimates with Strong Cloud and YouTube Growth

Alphabet (GOOGL) shares surged in after-hours trading following a robust third-quarter earnings report. The tech giant reported earnings per share of $2.87, significantly exceeding analysts' expectations of $2.26. Revenue climbed 16% year-over-year to $102.35 billion, outpacing the consensus estimate of $99.94 billion.

Google Cloud revenue jumped to $15.2 billion from $11.35 billion a year earlier, beating forecasts of $14.74 billion. YouTube advertising revenue also outperformed, reaching $10.26 billion compared to the anticipated $10.01 billion. Notably, Google's cloud business has demonstrated consistent growth, now eclipsing YouTube's more volatile ad revenue.

Segment performance varied: Google Search and other revenue rose 14.5% to $56.57 billion, while Google Network revenue declined 2.6% to $7.35 billion. Subscriptions, platforms, and devices revenue grew 20.7% to $12.87 billion, whereas Other Bets revenue fell 11.3% to $344 million.

Wall Street maintains a Strong Buy rating on Alphabet, with 28 Buy recommendations and eight Holds over the past three months. The company's diversified revenue streams and dominant market position continue to inspire confidence among investors.