Alphabet will face scrutiny of huge spending on AI when it reports revenue on Tuesday as Alphabet reports on revenues as Google parents’ revenue growth could slow in the holiday quarter as its advertising and cloud businesses slow down.
Like other American tech heavyweights, Alphabet also faces new scrutiny of its capital expenditure after Chinese startup DeepSeek launched its low-cost AI model last month that has the potential to push the AI industry into a price war.
Alphabet’s capital expenditure is estimated at USD 50 billion (approximately Rs 435,533 crore), according to LSEG, and plans to support its cloud scaling and AI-drien search capabilities in 2025, including Critical summary, it is crucial to defend its market share and attract more advertising revenue.
Microsoft and Metaplatform executives defended their massive AI spending plans last week, saying they were crucial to staying ahead in new areas.
Meanwhile, Google Cloud’s growth is expected to decline in the fourth quarter due to high expectations for the segment.
“Although growth rates (cloud units) are expected to slow down, investment is expected to continue, but efficiency gains have maintained buoyancy in profits so far. Maintaining this balanced behavior will be a key and investors will hope to see To this point, said Susannah Streeter, head of currency and markets at Hargreaves Lansdown.
According to visible Alpha estimates, revenue from Google Search and other businesses is expected to rise 11.2% in the fourth quarter, while up 12.2% in the third quarter.
Overall, Alphabet’s revenue is expected to rise 11.9% from the third quarter to US$96.6 billion (about Rs 841.537 crore), according to LSEG estimates.
The company’s search and YouTube services are used by more than 2 billion people per month – amid rising competition among e-commerce companies such as Amazon.com and Tiktok, the company is also trying to retain its search ad market Major share. .
Higher political ads around the U.S. presidential election may have helped in the fourth quarter after Facebook owner Meta reported similar advertising revenue growth.
Nevertheless, with the looming threat of global tariffs and increasing economic uncertainty, Meta’s soft first-quarter forecast has attracted attention to the outlook for the advertising market.
Cloud Focus
The segment saw its fastest growth in the two years in the September quarter, with high expectations for Google’s cloud business.
Alphabet’s stock rose about 7% this year this year as investors’ confidence in AI bets increased.
Still, Microsoft’s lack of numbers since the lack of numbers issued last week, and his Azure Cloud Computing slowed in the December quarter, but people have been given priority over AI Services over Core Cloud products. Worry about a larger-than-expected slowdown.
“We will want to see if Google has the same problem with Microsoft in AI as the source of growth, but the core super standard business has performed poorly. We hope to see that Google is not the case DA Davidson analyst Gil Luria said.
According to LSEG data, revenue in the fourth quarter increased by 32% after a 35% increase in the third quarter, according to LSEG data.
This will be faster than a large number of competitors Microsoft’s 31% jump and Amazon’s 19% growth.
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(This story has not been edited by Tech Word News’s staff and is automatically generated from the joint feed.)
