Google Stock Rally Faces Earnings Test Amid AI Sector Volatility
Alphabet Inc. shares have surged 8.94% year-to-date ahead of its February 4 earnings report, outperforming broader market trends. The rally hinges on beating Wall Street's projected $2.58 EPS for Q4 2026—a 14.2% quarterly increase—with some analysts demanding $3.28 to justify current valuations.
Google's Gemini AI platform now captures 20% of ChatGPT's former web traffic, while its Core Search business shows stabilization after 2024-2025 struggles. Legal victories and diversified growth provide tailwinds, but OpenAI's financial woes and Nvidia's reduced AI investments loom as potential headwinds.