Will Google Cloud's Robust Performance Aid Alphabet's Q4 Earnings?

Alphabet’s GOOGL fourth-quarter 2024 results, scheduled to be released on Feb. 4, are likely to benefit from its expanded cloud service offerings.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Alphabet’s cloud services arm — Google Cloud — has become the key catalyst driving its top-line growth.Alphabet’s cloud offerings include Google Cloud Platform and Google Workspace, which have been gaining momentum in the booming cloud computing market. Google’s growing investments in infrastructure, security, data management, analytics and generative AI (Gen AI) have been major growth drivers. Alphabet Inc. Revenue (TTM) Alphabet Inc. revenue-ttm | Alphabet Inc. QuoteThe Google Cloud segment, which derives revenues from fees collected for Google Cloud Platform services and Google Workspace collaboration tools, has been a major top-line growth driver for Alphabet.In the third quarter of 2024, Google Cloud revenues soared 28.8% year over year to $11.35 billion, accounting for 12.9% of the quarter’s total revenues.For the fourth quarter of 2024, the Zacks Consensus Estimate for Google Cloud revenues is pegged at $12.14 billion, suggesting growth of 32.1% from the year-ago quarter’s reported figure.Click here to know how Alphabet’s overall fourth-quarter 2024 results are likely to be.Key Factors to Consider for GOOGL’s Q4 EarningsGOOGL’s strong cloud services portfolio and expanding network of data centers, availability zones and regions are likely to have contributed well to Google Cloud revenues.Robust real-time data, analytics and AI, along with its open and scalable cloud infrastructure, are expected to have helped win customers in the to-be-reported quarter.Its deepening focus on Gen AI is anticipated to have been a major positive. Solid momentum in Gemini is expected to have benefited Google Cloud’s fourth-quarter performance.The growing momentum with the Vertex AI platform is likely to have contributed well.Google’s introduction of various open-source tools to support Gen AI projects and infrastructure has been a plus. The solid adoption of Gen AI-powered Workspace tools is likely to have driven strong top-line growth. The strong capabilities of Google Cloud to identify cyber threats and automate security workflows and responses on the back of generative AI are likely to get reflected in the upcoming results.What Our Model SaysAccording to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the exact case here.Alphabet currently has an Earnings ESP of +5.96% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Other Stocks to ConsiderHere are some companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:AMETEK AME has an Earnings ESP of +0.54% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.AMETEK shares have gained 10.5% in the trailing 12-month period. AME is set to report its fourth-quarter 2024 results on Feb. 4.DoorDash DASH currently has an Earnings ESP of +22.50% and a Zacks Rank #2.DASH shares have surged 74.6% in the trailing 12-month period. DASH is set to report its fourth-quarter 2024 results on Feb. 11.Lumentum LITE presently has an Earnings ESP of +17.01% and a Zacks Rank #2. Lumnetum shares have returned 52.9% in the trailing 12-month period. LITE is set to report its second-quarter fiscal 2025 results on Feb. 6.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AMETEK, Inc. (AME): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report Lumentum Holdings Inc. (LITE): Free Stock Analysis Report DoorDash, Inc. (DASH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks