1. Why did Google’s stock price drop today?
Google’s parent company, Alphabet Inc., reported disappointing Q4 earnings, with weaker-than-expected cloud revenue, increased capital expenditures, and concerns about its AI strategy. Investors reacted negatively, leading to an 8% drop in stock price.
2. What was the issue with Google Cloud revenue?
Even though Google Cloud grew by 30% year-over-year, it still missed Wall Street expectations. Investors were hoping for stronger performance, especially as Microsoft Azure and Amazon AWS continue to dominate the cloud market.
3. How much did Alphabet plan to spend in 2025?
Alphabet announced plans to increase capital expenditures to $75 billion, a sharp rise from $50 billion in 2024. However, the company didn’t provide enough details on how this money will be spent, raising concerns among investors.
4. How is AI competition affecting Google?
Google faces stiff competition from Microsoft and OpenAI, which have gained significant traction in AI-powered search and cloud services. Investors are worried that Google’s AI strategy is not as strong or well-communicated as its rivals’.
5. Are regulatory issues affecting Google’s stock?
Yes. Alphabet is dealing with multiple antitrust lawsuits and data privacy investigations, which could lead to stricter regulations and fines. These uncertainties are making investors nervous about Google’s long-term profitability.
6. Will Google’s stock recover soon?
It depends on how Alphabet addresses investor concerns in the coming months. If Google can improve its cloud revenue, explain its AI investments better, and navigate regulatory challenges effectively, the stock may rebound. However, if these issues persist, the stock could face continued volatility.
7. What should investors do now?
- Short-term traders might see this as an opportunity to buy at a lower price, expecting a rebound.
- Long-term investors should carefully watch Google’s AI advancements, cloud growth, and regulatory updates before making decisions.
- Cautious investors may choose to wait for Alphabet’s next earnings report before committing.
Price predictions :
As of February 5, 2025, Alphabet Inc. (GOOG) is trading at $207.71. Analysts have provided various forecasts for Google’s stock price over the next few years. Here’s a summary:
| Year | Price Prediction | Source |
|---|---|---|
| 2025 | $232 | J.P. Morgan Analyst Doug Anmuth barrons.com |
| 2025 | $250 | CoinPriceForecast coinpriceforecast.com |
| 2025 | $227.26 | Traders Union tradersunion.com |
| 2026 | $235 | Jefferies Analyst Brent Thill barrons.com |
| 2026 | $219.58 | CoinCodex coincodex.com |
Please note that these predictions are based on various analyses and are subject to change due to market conditions and company performance.
As of the third quarter of 2024, Alphabet Inc., the parent company of Google, reported total revenues of $88.3 billion, reflecting a 15% year-over-year increase.
The revenue breakdown is as follows:
| Segment | Revenue (Q3 2024) | Percentage of Total Revenue |
|---|---|---|
| Google Services | $76.5 billion | 86.6% |
| Google Cloud | $11.8 billion | 13.4% |
Google Services encompasses:
- Search & Other: $54.0 billion
- YouTube Ads: $8.9 billion
- Google Network: $7.6 billion
- Other Revenues: $6.0 billion
These figures highlight Google’s continued reliance on advertising, particularly through its Search and YouTube platforms, while also showcasing significant growth in its Cloud services.