Shares of Alphabet Inc. (NASDAQ:GOOG) are trading higher Thursday after the company reported third-quarter earnings.
- GOOG stock is challenging resistance. Find out why here.
What To Know: Alphabet reached $100 billion in quarterly revenue for the first time, reporting third-quarter revenue of $102.35 billion versus estimates of $99.64 billion. The company also beat expectations for earnings per share of $2.33, posting $2.87 for the third quarter.
Alphabet shares were trading up around 5% following the report, according to Benzinga Pro.
Alphabet CEO Sundar Pichai said the company saw double-digit growth across every major part of the business, and that the company’s cloud segment signed more deals over $1 billion through the third quarter than it did in the previous two years combined.
A large portion of the growth can be attributed to growing demand for artificial intelligence and the infrastructure that supports it, like Google Cloud, which delivered $15.16 billion in revenue in the quarter, up from $11.35 billion in the prior year’s quarter.
Alphabet raised expectations for capital expenditures for 2025. The company now expects CapEx to be in the range of $91 billion to $93 billion.
Analyst Changes: Following the company’s quarterly results, several analysts lifted price targets.
- BofA Securities analyst Justin Post maintained a Buy and raised the price target from $280 to $335.
- Jefferies analyst Brent Thill maintained a Buy and raised the price target from $285 to $320.
- JPMorgan analyst Doug Anmuth maintained an Overweight and raised the price target from $300 to $340.
- Piper Sandler analyst Thomas Champion reiterated an Overweight and raised the price target from $285 to $330.
- Canaccord Genuity analyst Maria Ripps maintained a Buy and raised the price target from $270 to $330.
GOOG Analysis: Alphabet is trading approximately 19.7% above its 50-day moving average of $241.19 and about 49.5% above its 200-day moving average of $193.12.
This significant distance from both moving averages suggests a strong upward trend, although the relative strength index (RSI) at 75.27 indicates that the stock is in overbought territory. Investors may want to exercise caution as the stock trades at 52-week highs, where profit-taking could occur.
GOOG Price Action: Alphabet shares were up 5.01% at $288.97 at the time of publication on Thursday, according to Benzinga Pro. The stock is hitting new all-time highs.
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