Financial Highlights
• Revenue: $113.83 billion (+18% YoY), beating the $111.3 billion estimate.
• EPS (Earnings Per Share): $2.82 (+31% YoY), beating the $2.63 estimate.
• Search Ads: $63.07 billion (+16.7%), beating the $61.47 billion estimate.
• YouTube Ads: $11.38 billion (+8.6%), missing the $11.84 billion estimate.
• Cloud Revenue: $17.66 billion (+47%), beating the $16.18 billion estimate. Growth accelerated from 34% last quarter.
Key Business Data
• Cloud Orders: $240 billion backlog (+55%). Major customers include Anthropic and Meta.
• Stock Buybacks: $5 billion spent this quarter; $70 billion still available.
• Cash on Hand: $127 billion.
• Gemini AI: 750 million monthly active users (up from 650 million).
Future Outlook & Risks
• 2026 Capex: Expected to nearly double to $175B–$185B, much higher than the $120B market forecast.
• Expansion: A 5-year partnership with Liberty Global for European cloud services; Bangalore office to grow to 20,000 staff.
• Legal Issues: Facing antitrust lawsuits from the DOJ and multiple states.
Technical Analysis & Market Cap
• Stock Price: Volatile after hours but currently flat.
• Support: $320 is the key level (trendline and moving average). If held, the uptrend remains healthy.
• Resistance: $350ish. A breakout could lead to targets of $370ish and $390ish.
• Market Context: Tech stocks are currently weak. Google’s market cap ($4.23T) has a high chance of passing Nvidia ($4.06T) to become the largest company.
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