Alphabet reports third-quarter results on October 28, and the author argues Google Cloud revenue growth could be the catalyst that sends its stock sharply higher. The stock is up only about 7% this year after topping 25% in early May, and it is trailing the S&P 500. Google Cloud revenue grew 82% in the second quarter, accelerating from 63% in the first quarter and 48% in the fourth quarter of 2025, well ahead of Microsoft Azure's 43% and AWS's 37%. Growth is fueled by AI demand and Alphabet's sales of its TPU chips to some clients, with most of that revenue expected in 2027, while Alphabet plans capital expenditures of $195 billion to $205 billion this year. The author considers the stock fairly valued at 27 times operating income, in line with peers, and says triple-digit cloud growth could drive the share price much higher.
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GOOGLcloud computingearningsartificial intelligence
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Related tickers and likely impact
GOOGL
▲ Likely positiveAlphabet Inc. (Class A)
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Communication Services |
| Industry | Interactive Media & Services |
| Market cap | $4.3T |
| Close on 10/20/2026 | 340.24 |
| Change that session | -1.14% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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