The Zacks Analyst Blog Highlights Alphabet

For Immediate Release

Chicago, IL – April 24, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Alphabet Inc. GOOGL.

Here are highlights from Wednesday’s Analyst Blog:

Should You Buy, Hold, or Sell Alphabet Stock Ahead of Q1 Earnings?

After Thursday's market close, Alphabet Inc. will announce first-quarter earnings results. The company stands to benefit from artificial intelligence (AI) growth and seems undervalued. Should you buy now or await the earnings update? Let's find out –

Alphabet's Q1 Earnings Will Benefit from AI

So far this year, Alphabet's shares have plunged 20% as the broader market reeled under tariff pressure and the Google parent lagged behind its competitors in the AI race. However, the company's revenues and earnings are expected to improve in the first quarter as Alphabet continues implementing AI into its applications like cloud infrastructure, workplace collaboration tools and search engine.

The Google Gemini AI is utilized across Alphabet's various platforms and products, reaching over 2 billion users. Samsung's smartphone AI assistant is Gemini, and the company aims to reach 500 million Gemini users by the year-end with support from its partnership with Samsung. Additionally, Alphabet will launch an ad-supported version of Gemini to boost ad revenues.

Despite holding a strong position in the search engine market, CEO Sundar Pichai aims to enhance search volumes through its Circle to Search feature, which is now on 200 million Android devices. Meanwhile, an anticipated high demand for AI cloud services will boost Google Cloud revenues in the first quarter.

However, it's not just in the first quarter; Google Cloud revenues are expected to sustain strong growth due to increasing demand for cloud-based AI services, which are projected to grow 30% annually until 2032. Nonetheless, Alphabet is forecasted to have a robust first quarter attributable to AI, with revenues projected at $75.53 billion (up 11.7% from the previous year) and earnings per share (EPS) expected at $2.01 (exceeding $1.89 from last year).

Also, Alphabet has, on average, delivered a positive trailing four-quarter earnings surprise of 11.6%, hinting at potential first-quarter earnings growth. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Alphabet Faces Challenges From Tariffs and Weak

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