Alphabet Q3: Cloud Surges, Search Monetization Lags

seekingalpha.com —

Alphabet Inc. reported robust 25% revenue growth in Q3, driven by strong Google Cloud performance, though Search monetization lagged as AI Mode queries outpaced ad revenue growth. The company maintains a "Strong Buy" rating with a $426.20 price target, representing 51% upside, despite negative $9.1 billion free cash flow and elevated capital expenditures that cloud near-term returns. AI distribution channels like Gemini and Google Cloud are fueling top-line expansion, but monetizing AI Mode and managing CapEx remain critical watch items, with improving margins supporting the long-term bullish thesis.


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