Alphabet’s Breakout Quarter
Alphabet just posted another blockbuster quarter — and this time, it broke more than financial records.
The Google parent reported third-quarter earnings that exceeded analyst expectations, with total revenue climbing past $100 billion for the first time. The milestone cements Alphabet’s position as one of the top-performing Big Tech stocks of 2025, bolstered by surging demand for cloud computing and artificial intelligence.
Revenue growth was fueled by:
- Google Cloud — up 34% year-over-year, as enterprises ramped up AI and data infrastructure spending.
- Advertising — up 13%, defying macroeconomic headwinds and tightening marketing budgets.
Alphabet also raised its CapEx guidance to $91–$93 billion for the year, signaling continued investment in next-generation data centers and AI systems.
Shares jumped nearly 5% to $288 following the report — setting a new all-time high and extending a 50% gain year-to-date, narrowly ahead of Nvidia in the Magnificent Seven leaderboard.
Chart Watch: Alphabet’s Technical Setup
Alphabet’s rally isn’t just about fundamentals — the chart confirms the momentum.
Earlier this month, shares broke out from a flag pattern, a classic continuation setup that suggests the prior uptrend is resuming.
While the Relative Strength Index (RSI) still confirms bullish momentum, it has entered overbought territory, hinting that a short-term cooldown or sideways consolidation could be near.
Measuring the Next Move: $360 Target
Applying the measuring principle, which projects potential gains based on prior price swings:
- The prior uptrend added roughly $115 in share value before consolidation.
- Adding that to the flag’s breakout point near $245 produces a potential upside target of $360.
That’s the next major resistance level — and one investors will be watching closely if the momentum continues.
Support Levels to Monitor
If the stock consolidates, traders should keep an eye on two key zones of support:
- $235 — the base of the breakout flag pattern and a prior September pivot area.
- $205 — near the 50-week moving average, representing a major technical floor and January’s swing high.
A drop below those levels could invite deeper profit-taking, though long-term trend support remains intact.
Why It Matters
Alphabet’s results reinforce two broader themes defining the 2025 market:
- AI-driven infrastructure spending is reshaping Big Tech balance sheets, with companies like Alphabet and Meta committing billions to stay ahead.
- Cloud profitability is accelerating, providing a durable growth engine even as ad markets normalize.
In other words — this isn’t just a quarter of good numbers. It’s a signal that Alphabet’s AI and cloud transformation is beginning to pay off at scale.
WSR Take
Alphabet’s blowout quarter confirms that AI isn’t just a narrative — it’s now driving record-breaking profits.
The company’s dual strength in advertising and cloud computing positions it as the most balanced AI play among the Magnificent Seven, even as peers like Nvidia and Meta chase more specialized lanes.
From a technical standpoint, the stock’s breakout reinforces confidence in the broader market’s momentum — especially as investors weigh potential rate cuts and renewed tech expansion.
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Disclaimer:
Wall Street Reality does not work with or receive compensation from any public companies mentioned. Content is for informational and educational purposes only.
