Alphabet Inc. (GOOGL) Trending Stock: Earnings Estimate Revisions and Zacks Rank

Alphabet (GOOGL) has seen a 9.2% return over the past month, outperforming the Zacks S&P 500 composite's 3.8% change. The company's internet search business has gained 11.7% over this period. Analysts expect Alphabet to post Q1 earnings of $2.33 per share, a 9.9% change from the year-ago quarter. The Zacks Rank of #3 (Hold) indicates a neutral outlook for the stock.

Alphabet Inc. (GOOGL) has seen a significant uptick in its stock price, rising 9.2% over the past month, outperforming the broader Zacks S&P 500 composite's 3.8% increase. This performance is particularly notable given the company's internet search business, which has gained 11.7% over the same period. Analysts predict that Alphabet will post Q1 earnings of $2.33 per share, representing a 9.9% change from the year-ago quarter. Despite the neutral outlook indicated by the Zacks Rank of #3 (Hold), the stock's recent performance suggests investor optimism in the company's growth prospects [1].

A key factor contributing to Alphabet's stock performance is the recent legal victory in its online search monopoly case. A U.S. judge ruled that Alphabet-owned Google will not have to sell off Chrome or divest the Android operating system. The judge also mandated that Google share information with competitors to remedy the online search monopoly. This ruling avoids potential disruptions to Google's core services and maintains the company's market dominance [2].

Furthermore, Alphabet's Google Services segment revenues have benefited from higher advertising revenues, which grew by 11.7% year-over-year to $82.54 billion in the second quarter of 2025. This segment accounted for 85.6% of the company's total revenues, highlighting the significant impact of advertising on Alphabet's financial performance. The integration of AI-powered features, such as AI Overviews reaching more than 2 billion users per month, has driven user engagement and expanded the target audience for creators and brands [3].

In the digital advertising landscape, Alphabet faces stiff competition from Meta, which has been leveraging AI-driven tools to boost its ad revenue. Meta's AI-driven ad tools boosted its Q2 2025 revenue to $46.6 billion, closing the gap with Google's $54.2 billion. Analysts predict that Meta could surpass Google in ad revenue by 2026, driven by AI tools that optimize targeting, pricing, and creative performance [4].

Despite the competition, Alphabet's continuous integration of AI-powered features across its services, including Google Search and YouTube, provides a robust competitive advantage. The company's Gemini app, powered by Google DeepMind, has seen recent updates that enhance visual guidance and real-time translation capabilities, further solidifying its position in the AI-powered services market.

In conclusion, Alphabet's recent legal victory and strong performance in its internet search business have driven investor optimism. The company's continued investment in AI-powered features and its robust market position suggest that Alphabet is well-positioned to maintain its dominance in the digital advertising landscape.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3UP1H5:0-alphabet-up-after-us-judge-rules-google-will-not-have-to-sell-chrome-in-search-monopoly-case/
[2] https://www.ainvest.com/news/meta-ai-driven-ad-growth-timeline-overtake-google-search-2508/
[3] https://finance.yahoo.com/news/googl-services-benefits-ai-powered-162500402.html