Varun Takkar
Stock & Options Trading, Technical Analysis, Trading Community
Alphabet's EPS miss came from an $8.7 billion paper loss on equity investments, not a weakening operating business. Revenue rose 25% to $127.6 billion, Google Cloud revenue doubled to $30.7 billion, and cloud operating income tripled to $11.1 billion. The roughly 10% after-hours selloff is an incredible buying opportunity: the $287-$288 gap is the preferred area to buy, with an open below $287 that fills the gap triggering a long. x.comÂ
Alphabet is set up for its next leg up as a textbook bull flag meets accelerating AI and cloud growth. After a near-vertical surge off the $314.90 post-earnings low, it is consolidating in a descending channel near $340 on tapering volume; a high-volume break above the channel would open the way to $364 resistance. Google Cloud revenue rose 82% to $24.8B with 35.6% margins and a $514B backlog, the Anthropic partnership secures long-term demand, and it trades near 16.9x trailing earnings. x.comÂ
Alphabet's business is bigger and more profitable across the board, while its stock is back at its March war-scare low. That makes it hard not to pour all future earnings into the stock. Quarterly revenue rose from $110B to $128B; Google Cloud growth accelerated from 63% to 103%, with $30.7B in quarterly revenue, an operating margin around 36% and profit more than tripling in a year. Search queries are growing at their fastest pace in five years. x.comÂ
Alphabet's cloud business could reach $100 billion over the next year or so. Kalshi Finance says Google Cloud revenue grew 103% to $30.7 billion. Alphabet is spending $51.36 billion on AI infrastructure and reported an $8.664 billion equity-securities loss because of SpaceX. The stock looks like a good buy on the dip, with prices below $300 in oversold territory. x.com x.comÂ
Alphabet's earnings weakened the investment case because it missed on YouTube, Search, services, subscriptions and earnings, while reporting $0 in buybacks and double the negative free cash flow of last quarter. Cloud revenue was impressive, but Alphabet is a hold here and needs to come down significantly before adding. x.comÂ
Google Cloud's surging revenue and improving profitability make dumping Alphabet stock look perverse. Q3 revenue rose from $15.16 billion to $30.71 billion year over year, while operating income climbed from $3.59 billion to $11.12 billion and margin rose from 23.7% to 36.2%. x.comÂ
Alphabet's earnings growth makes its valuation look attractive. It trades at 21x forward earnings and a 0.47 PEG while EPS grows 34% year over year; shares are down almost 9% year to date. Search still grows 12% and Cloud grows 103%, undercutting the concern that Search will sink the business. x.com x.comÂ
Alphabet looks weak because its Search & Other revenue missed expectations, casting doubt on the earlier search-strength case. Search & Other brought in $63.35B versus $64.85B estimated; Google Services, YouTube ads, total revenue and operating income also missed, while Cloud beat. x.comÂ
Alphabet's businesses beyond search are why it will lead the real AI boom. Google Cloud, DeepMind and Waymo broaden its reach, and its $900 million SpaceX investment is now worth $85 billion. Fear emerging as the shares fall is an opportunity; a decline toward the buy zone is welcome, even as Q3 capex has taken a large hit out of free cash flow. x.com x.com x.com x.comÂ
Alphabet's 103% year-over-year cloud growth makes its roughly 10% overnight stock drop hard to understand. That growth matters more here than what the rest of the company is doing. x.comÂ
Slower Google Search growth adds to doubts about paying a premium for Alphabet. Search revenue rose 12% year over year to $63.4 billion in Q3 2026, down from 17% the prior quarter and 19% two quarters earlier; even that 19% figure did not pass the smell test. Google remains a great company, but its stock would be worth buying at a lower price. x.com x.comÂ
Alphabet's exceptional revenue growth and expanding margins make a discount attractive if the market offers one. Quarterly revenue reached $125 billion, up 25%; search is growing faster than YouTube ads. The disappointing result reflects a mark-to-market on SpaceX, while the earnings call sounded great. x.com x.com x.com x.comÂ
