Three reasons to invest in Alphabet stock before Q3 earnings: persistent advertising growth, rising cloud computing demand, and a reasonable valuation.

Alphabet (GOOG) has experienced a 30% surge since Q2 earnings, driven by positive developments and a judge's decision not to break up the company's core business. With persistent advertising growth, rising cloud computing demand, and a reasonable valuation, management's Q3 outlook could be another catalyst for the stock to go higher. Buying Alphabet before it reports earnings on Oct. 29 is a smart move.

The e-commerce and cloud computing sectors are at the forefront of innovation, driven by the relentless integration of Artificial Intelligence (AI). As the broader S&P 500 shows a positive trajectory, technology stocks are leading the charge. However, beneath the surface, these sectors exhibit nuanced movements influenced by investor sentiment around AI spending and the impending Q3 2025 earnings report from Amazon (NASDAQ: AMZN), according to a WRAL article.

Amazon, with a market capitalization exceeding $2.3 trillion, is a colossal entity at the nexus of e-commerce and cloud computing. Its upcoming earnings announcement on October 30, 2025, is set to be a pivotal market event. Analysts expect Amazon to report earnings per share (EPS) of $1.58, suggesting a year-over-year growth of approximately 9-10%. Net sales are projected to reach between $177.7 billion and $177.93 billion, aligning with Amazon's own guidance of $174 billion to $179.5 billion, marking an estimated 12% year-over-year increase, the article notes.

A critical area of focus will be the performance of Amazon Web Services (AWS), the company's highly profitable cloud computing arm. Analysts like TD Cowen's John Blackledge expect AWS to accelerate its growth to 18.3% year-over-year, driven by generative AI workloads, according to the article. Amazon's robust advertising revenue, which climbed 22% in the previous quarter, is also expected to continue its strong performance, further contributing to the company's bottom line.

Historically, Amazon's influence on the e-commerce landscape is undeniable, often referred to as "the Amazon Effect." Its Amazon Prime service, launched in 2005, fundamentally reshaped consumer expectations for fast and free shipping, compelling competitors to adapt. During the COVID-19 pandemic, Amazon's e-commerce operations saw a dramatic surge in profitability, solidifying its dominant position, the article observes.

In the cloud computing realm, AWS has been a consistent profit engine for Amazon, frequently contributing the majority of its operating income. AWS maintains its leadership in the global cloud infrastructure market, holding approximately 30% market share in Q2 2025. Its performance often sets the tone for the entire cloud industry, with any fluctuations in its growth or margins impacting the valuations of other cloud providers, the article adds.

Amazon's strategic investments in AI infrastructure, including data centers and specialized chips, are a testament to its commitment to maintaining its competitive edge. While these investments have led to increased capital expenditure and some margin contraction in recent quarters, they are viewed as essential for long-term growth, particularly in the burgeoning AI-driven cloud landscape, the article states.

The company's sheer scale and market capitalization of $2.3 trillion position it as a significant market mover. Its earnings reports, especially the forward-looking guidance, can sway broader market sentiment, particularly within the technology and retail sectors. Analysts generally maintain a "Strong Buy" consensus for AMZN stock, underscoring its perceived long-term growth trajectory driven by AI adoption, advertising growth, and operational efficiencies in e-commerce, the article reports.

Amazon's impending Q3 2025 earnings report holds significant implications for a wide array of public companies across both the e-commerce and cloud computing landscapes. The results, particularly from AWS, will serve as a crucial indicator of market health, consumer spending patterns, and the pace of technology adoption, thereby creating potential "wins" and "losses" for various competitors and partners, the article explains.

In the e-commerce sector, a strong showing from Amazon could intensify pressure on major traditional retailers with growing online presences, such as Walmart (NYSE: WMT), Target (NYSE: TGT), and Best Buy (NYSE: BBY). Conversely, shipping and logistics companies like FedEx (NYSE: FDX) and UPS (NYSE: UPS) might see increased volumes, despite Amazon's expanding internal logistics, as higher e-commerce sales translate to more package deliveries, the article suggests.

In the cloud computing arena, if AWS reports strong revenue growth, improved profit margins, and significant customer acquisitions—especially in emerging areas like AI infrastructure—it could signal continued market share dominance, intensifying competition for other major cloud providers such as Microsoft (NASDAQ: MSFT) with Azure, Alphabet (NASDAQ: GOOGL, NASDAQ: GOOG) with Google Cloud Platform (GCP), and Oracle (NYSE: ORCL) with Oracle Cloud Infrastructure (OCI), the article notes.

Amazon's performance is not merely a reflection of its own operational success but a significant indicator of broader trends shaping the global digital economy. The upcoming Q3 2025 earnings report will offer critical insights into the pervasive influence of Artificial Intelligence (AI) and its rapid integration across both e-commerce and cloud computing, according to the article.

The aftermath of Amazon's Q3 2025 earnings report will undoubtedly set the tone for both the e-commerce and cloud computing sectors, influencing short-term market movements and shaping long-term strategic trajectories. In the immediate future, a strong earnings report from Amazon, especially if driven by robust Prime Day sales and accelerated AWS growth, could inject significant bullish sentiment into the market, potentially leading to a rebound in tech stocks. Conversely, any underperformance, particularly in AWS, could trigger cautious sentiment across the broader market, the article concludes.