{
  "id": 14439591,
  "title": "Prediction: Alphabet Stock Is Going to Soar After Oct. 28",
  "url": "https://urgent.news/2026/10/14/prediction-alphabet-stock-is-going-to-soar-after-oct-28",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-14T11:09:00.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/14/prediction-alphabet-stock-going-soar-after-oct-28/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "The S&P 500 reached a new record high recently, and investors are pricing in high expectations for artificial intelligence (AI) companies. Technology giants will report their latest earnings over the coming month as strong corporate results are crucial to maintaining this bull market. Alphabet, Google's parent company (GOOG +0.16%)(GOOGL +0.30%), is set to release its third quarter results on October 28. The stock appears to be fairly priced before the report, and here's why I believe it could experience significant growth afterward. Google Search and Google Cloud are Alphabet's most significant businesses. Search accounts for over half of the company's total revenue, while Cloud is the fastest-growing segment. Concerns have arisen that AI chatbots may disrupt traditional internet search engines like Google Search. However, Alphabet has introduced several AI features to enhance the user experience. Features like AI Overviews, which provide AI-generated responses above search results, and AI Mode, a chatbot-style interface for expanding queries, have increased Google Search usage. CEO Sundar Pichai announced that AI Mode has surpassed 1 billion monthly users, and these advancements are driving higher Google Search traffic, resulting in a record $63.3 billion in revenue for the second quarter (ended June 30), a 17% year-over-year increase. Investors should closely examine Alphabet's next update on how AI improves the search business on October 28. Google Cloud also reported a record second quarter with revenues of $24.8 billion, representing an accelerated growth rate of 84%. The platform offers customers access to computing power from cutting-edge data centers and a range of pre-built foundation models, which are essential for creating AI software. As of June 30, Google Cloud had a substantial $514 billion order backlog for AI infrastructure, which could be a strong indicator of future revenue. If it increased during the third quarter, it would signal that demand for AI computing capacity remains robust. Alphabet's second-quarter earnings surged by 294% year-over-year to $9.11 per share, primarily due to its SpaceX initial public offering (IPO) in June. Alphabet invested $900 million in SpaceX through a private placement in 2015, but accounting rules necessitated recognizing the fair market value of its position after the IPO, which reached over $90 billion as of June 30. This led to a substantial one-time increase in Alphabet's earnings unrelated to its operating performance. With that factor removed, Wall Street's average estimate (provided by Yahoo! Finance) predicts Alphabet's earnings will likely stabilize at around $3.02 per share in the third quarter, indicating a more modest year-over-year growth rate of 5%. Valuing Alphabet based on its trailing-12-month earnings might be misleading because of the inflated second-quarter result. However, looking ahead, analysts believe the company will generate earnings of $14.98 per share in 2027, resulting in a forward price-to-earnings (P/E) ratio of 23.4. This slight premium to the Nasdaq-100 index, which has a forward P/E of 22.1, is justified by Alphabet's impressive AI-related strength in Google Search and Google Cloud. Over the past 12 months, Alphabet stock has returned approximately 45%, and I believe the company's third-quarter report will set the stage for further upside, provided its operating results demonstrate continued momentum in the search and cloud businesses.",
  "summary": "Alphabet looks attractively valued heading into its upcoming quarterly earnings report.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "Prediction: Alphabet Stock Is Going to Soar After Oct. 28",
        "url": "https://urgent.news/2026/10/14/prediction-alphabet-stock-is-going-to-soar-after-oct-28-14440722",
        "published": "2026-10-14T11:29:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}