Eyes are on megacap tech earnings this week, and it is a big one for Google parent Alphabet as the tech behemoth faces several questions around its artificial intelligence spending spree and scrutinized dominance in online search. Alphabet is set to post its third-quarter financial report after the closing bell on Tuesday. Several analysts maintained their buy ratings ahead of the results and expect AI-driven gains to appear in its search and YouTube segments.
Still, the consensus revenue estimate implies Alphabet could post its slowest year-over-year growth since the third quarter of 2023 . Analysts polled by LSEG expect Alphabet to earn $1.85 per share on $86.
3 billion in revenue, implying year-over-year earnings and revenue growth of 19.1% and 12.5%, respectively.
Last quarter, the company's results topped estimates , but shares fell short due to weak YouTube advertising revenue. There is still ample, long-term bullish sentiment behind Alphabet despite fears of increasing regulatory issues and stiffer competition in the digital ad market. Analysts polled by FactSet have a consensus overweight rating and $202.
50 target price, suggesting about 21.5% potential upside from Monday's close. Citi Research also added Alphabet to its U.
S. Large Cap Recommended List on Oct. 16.
In trading Tuesday, the stock was up more than 1%. Shares are up 3% over the past month and have gained roughly 21% year to date. GOOGL YTD mountain Google performance this year.
But Jefferies analyst Brent T.