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Google Stock Soars: AI & Cloud Frenzy Fuels Record Rally – Is $300 Next?
28 October 2025
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Google Stock Soars: AI & Cloud Frenzy Fuels Record Rally – Is $300 Next?

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  • Stock Surge: Alphabet (Google) shares have jumped about 30% in 2025, recently hitting all-time highs. In mid-October, GOOGL closed around ~$259 (Oct. 24) [1] and briefly topped $256 on Oct. 20 [2], pushing Alphabet’s market cap toward the $3 trillion club. On Oct. 27 it closed near $265 [3], far outpacing the 2025 gains of major indexes (S&P ~+12%).
  • Earnings Outlook: Alphabet reports Q3 results on Oct. 29. Analysts forecast ~13% revenue growth (to about $100 billion) and ~7% EPS growth (≈$2.27 per share) year-over-year [4]. Consensus calls for roughly $84.7B in Q3 sales (+13.6% YoY) [5]. A strong report could validate the rally; a miss or cautious guidance could shake investors.
  • Search & Ad Recovery: Google’s core ad business is rebounding. In Q2 Search ad sales grew +11.7% YoY ($54.2B) and YouTube ads +13% [6], helping lift overall revenue +13% ($96.4B). Generative-AI features in search are keeping engagement high. Zacks Research (via Nasdaq) notes Q3 ad revenue is projected at ~$72.5B (+10% YoY) [7], a sign ads are “firmly back on a growth track.”
  • Cloud Powerhouse: Google Cloud is booming too. Q2 cloud sales jumped ~32% YoY to $13.6B [8] (now profitable with ~21% margin). For Q3, analysts expect ~29% growth (~$14.7B) [9]. Google is expanding capacity – in October it announced over $24B in new AI/cloud projects (a $15B data center in India and $9B more U.S. capacity) [10]. These investments underscore Google’s “AI everywhere” push.
  • AI-Driven Products: Alphabet is weaving AI into consumer devices. On Oct. 4 Google revealed its Pixel 10 and Pixel 10 Pro phones (with next-gen Tensor G5 chips and on-device AI) plus a Pixel Fold and Pixel Watch 4 [11]. CEO Sundar Pichai says “AI is positively impacting every part of the business” [12], signaling that products and services will increasingly leverage AI to boost user value.
  • Wall Street Bullish: Roughly 80–90% of analysts rate GOOGL a “buy” [13] [14]. Many firms have raised price targets: Goldman to $288, Scotiabank to $310, BMO to $294 [15]. Even Oppenheimer sees an $18% rally ahead (target ~$300) [16]. Morgan Stanley’s recent target is ~$270 [17]. In short, consensus is that Alphabet is attractively valued (trading around 19× forward earnings [18], below peers) and should grow from here if trends continue.
  • Regulatory Backdrop: Some antitrust concerns have eased – a U.S. judge in September ruled Google need not break up its core business [19]. But new regulations loom. The UK’s CMA granted Google Search special “strategic market status” (tightening oversight) [20]. The EU just slapped Google with a ~$3.45 billion adtech fine [21] (being appealed). In the U.S., courts are forcing Google to open its Play Store to third-party apps/payments by 2026 [22]. These issues are background risks even as the breakup threat fades.
  • Tech Rally Context: Alphabet’s surge parallels a broader AI-fueled rally among big tech. Apple’s stock just hit a new high (~3.9% gain on Oct. 27) and is near $4 trillion market cap [23], and Microsoft is up ~23% (briefly above $3T) [24]. Even Meta has rallied (~+20%) on revived ad spending. By contrast, Amazon has lagged. The Nasdaq is near record highs, lifted by AI optimism [25].

Alphabet’s Q3 report will be the key catalyst in coming days. If earnings beat expectations, the stock may extend its run; if not, a pullback is possible. As one strategist put it, “It’s been a standout run for Alphabet” thanks to its AI and ad recoveries [26]. Noted investor Eric Schiffer adds that while current AI adoption is “low right now,” long-term growth in AI spend should continue – “I don’t think we are at a bubble stage yet” [27].

In summary, Google’s stock rally is driven by strong fundamentals (ad and cloud growth) and heavy AI investment. Many see more upside: Alphabet’s price/earnings ratio (~19×) is below peers’, suggesting room if growth holds [28]. But risks remain: high AI capex could pressure profits, and regulators worldwide are tightening scrutiny [29]. For now, investors remain upbeat, eagerly awaiting next week’s results to see if the good times continue [30].

Sources: Reporting by Reuters, Nasdaq/Zacks, and financial analyses [31] [32] [33] [34]. In particular, market research (TechStock²) and news outlets have highlighted Google’s record rally, robust ad/cloud growth, and heavy AI spending as key drivers [35] [36]. These insights are supplemented by expert commentary and current stock data.

Stock To Buy Now Over & Over | Investing $50k Google Stock
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References

1. ts2.tech, 2. ts2.tech, 3. ts2.tech, 4. ts2.tech, 5. www.nasdaq.com, 6. ts2.tech, 7. www.nasdaq.com, 8. ts2.tech, 9. www.nasdaq.com, 10. ts2.tech, 11. ts2.tech, 12. ts2.tech, 13. ts2.tech, 14. ts2.tech, 15. ts2.tech, 16. ts2.tech, 17. ts2.tech, 18. ts2.tech, 19. ts2.tech, 20. ts2.tech, 21. ts2.tech, 22. ts2.tech, 23. ts2.tech, 24. ts2.tech, 25. ts2.tech, 26. ts2.tech, 27. ts2.tech, 28. ts2.tech, 29. ts2.tech, 30. ts2.tech, 31. www.nasdaq.com, 32. www.reuters.com, 33. ts2.tech, 34. ts2.tech, 35. ts2.tech, 36. ts2.tech

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Mateusz Kaczmarek Latest posts

A technology and finance expert writing for TS2.tech. He analyzes developments in satellites, telecommunications, and artificial intelligence, with a focus on their impact on global markets. Author of industry reports and market commentary, often cited in tech and business media. Passionate about innovation and the digital economy.

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Stock Market Today

  • Tuesday Sector Leaders: Materials Lead; Industrials Mixed Midday Trading
    October 28, 2025, 4:20 PM EDT. Through midday Tuesday, the Materials sector leads with a 0.3% gain, helped by Sherwin-Williams (SHW) and Nucor (NUE), up about 5.5% and 4.9% intraday. The Materials Select Sector SPDR ETF (XLB) is up 0.4% and 7.66% YTD; SHW and NUE together account for roughly 11.2% of XLB. The Industrial sector is the second best performer, down only 0.1%, with PayPal (PYPL) and United Parcel Service (UPS) rising 8.0% and 7.9% on the day. The Industrial Select Sector SPDR ETF (XLI) is down 0.1% today, but up 19.20% YTD. PYPL is down 11.10% YTD and UPS down 19.73% YTD, with UPS representing about 1.5% of XLI. Across sectors, eight are lower and one up for the S&P 500 components; overall, the mood is mixed.
  • Fed Rate Cut Expectations Keep Crypto Traders Eyeing Bitcoin and Ethereum
    October 28, 2025, 4:10 PM EDT. Markets expect a 25-basis-point Fed rate cut, with a ~97.8% probability, but crypto impacts remain debated. Analysts say ending quantitative tightening could be a tailwind for Bitcoin as inflation tolerance rises, with Bank of America and JPMorgan signaling QT may end soon. Bitcoin traded around $114,850 after a flat day; Ethereum hovered just above $4,100, up versus a week ago but down on the day. Traders believe the cut is largely priced in, and easier policy historically supports crypto and risk assets into 2026. The key question is whether the Fed will unwind QT and how that would affect liquidity and inflation expectations, shaping the near-term moves for BTC, ETH, and broader markets.
  • Carter's (CRI) Dips After Weak Q3 Results and Restructuring Plan
    October 28, 2025, 4:03 PM EDT. Carter's (CRI) shares fell about 3.9% after reporting a weak third-quarter with EPS of $0.32 vs $1.62 a year earlier and revenue of about $758 million. The company announced a sweeping restructuring: closing about 150 stores and cutting 300 corporate jobs, while tariffs and higher product costs pressured margins, leading to suspended fiscal 2025 guidance. The stock is down 41.8% YTD and trades around $31.31, well below a 52-week high of $57.01. The move underscores how trade tensions weigh on consumer discretionary names; a potential easing of tariffs could lift margins and sales. The report notes the sector's sensitivity to international relations and suggests investors may view the decline as meaningful but not a fundamental change in the business.
  • Great-West Lifeco's Series P Preferred Shares Cross 5.5% Yield Threshold
    October 28, 2025, 4:00 PM EDT. Great-West Lifeco Inc's Non-Cumulative First Preferred Shares, Series P (GWO-PRP.TO) traded near $24.53 in Tuesday's session, delivering a yield above 5.5% based on the quarterly dividend (annualized to $1.35). The shares stood at about a 1.60% discount to liquidation preference. Importantly, the non-cumulative feature means missed payments aren't carried forward before resuming a common dividend. On the day, the common shares (GWO.TO) rose modestly alongside a slight uptick in GWO-PRP. Investors should weigh the discount to liquidation and the non-cumulative structure when assessing risk and return in this preferreds issue.
  • Manulife Financial's Series 3 Preferred Shares Cross 5% Yield Territory
    October 28, 2025, 3:58 PM EDT. On Tuesday, Manulife Financial Corp's Non-cumulative Rate Reset Class A Shares, Series 3 (MFC-PRC.TO) traded with a dividend annualized at $1.125, placing the security near a 5% yield as low as $22.42. At last close, MFC.PRC was at a ~9.72% discount to its liquidation preference. Note the shares are non-cumulative, meaning missed payments aren't carried forward before resuming a common dividend. The day's action showed the PRC off about 0.7%, while the common shares (MFC.TO) were also down roughly 0.7%. Investors should weigh the favorable yield against the non-cumulative structure and the risk of price swings tied to interest rates and the issuer's credit.
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