Why Alphabet Stock Soared This Week

By Keith Noonan | November 02, 2025, 2:14 PM

Key Points

Alphabet reported better-than-expected third-quarter results.
The company's Google Cloud business continued to show strong sales momentum.
Alphabet raised its full-year capital expenditures target to between $91 billion and $93 billion.
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Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) stock booked big gains over the last week of trading thanks to strong quarterly results. The tech company's share price surged 8.2% higher compared to where it closed at the end of the previous week.

Alphabet reported its third-quarter results on Oct. 29 and posted sales and earnings performance that came in far better than Wall Street had anticipated. The stock is now up 48.5% across 2025.

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Alphabet stock surges following impressive Q3 results

Alphabet delivered non-GAAP (adjusted) earnings per share of $3.10 on sale of $102.35 billion. For comparison, the average Wall Street analyst estimate had targeted adjusted earnings per share of $2.33 on revenue of $99.89 billion. Sales for the company's Google Cloud division came in at $15.15 billion, topping Wall Street's call for sales of $14.74 billion as demand connected to artificial intelligence (AI) continued to drive strong growth. YouTube advertising revenue also topped expectations, with sales of $10.26 billion beating Wall Street's call for sales of $10.01 billion.

Alphabet is keeping the pedal to the floor on AI investments

Like other cloud hyperscalers, Alphabet is continuing to invest heavily in data center infrastructure to advance AI initiatives. CEO Sundar Pichai said that the company was scaling purchases and integrations for high-end AI chips from Nvidia and outlined aggressive capital expenditures (capex). The company now expects capex for this year to come in between $91 billion and $93 billion -- up from its previous guidance for capex of $85 billion.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

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