Alphabet (GOOGL) Soars 3.12% on Strong Q2 Earnings, AI Growth

On July 24, 2025, Alphabet's stock rose by 3.12% in pre-market trading, reflecting a positive market sentiment towards the company's recent financial performance and strategic initiatives.

Alphabet's second-quarter earnings report for 2025 highlighted several key points that contributed to the stock's rise. The company's search business, which has been a major concern due to market share fluctuations and antitrust litigation, showed resilience with an 11.7% year-over-year growth rate. This growth was driven by the integration of Gemini's large model into various applications, the penetration of AI advertising tools, and increased user engagement in AI scenarios.

YouTube continued to be a strong performer, with a 13% growth rate in the second quarter. This growth was fueled by the popularity of CTV and Shorts, which increased user engagement and ad revenue. Google Cloud also saw significant growth, with a 31.5% increase in revenue, driven by high demand and improved supply chain management.

Despite these positive developments, Alphabet faces ongoing challenges, including the impact of AI on its search business and potential regulatory pressures. The company's decision to increase capital expenditures to approximately $85 billion for 2025 reflects its commitment to investing in AI and other strategic areas to drive future growth.