Google (GOOGL) Earnings Preview: Crypto’s Secret Tech Play?
Alphabet's earnings drop Wednesday—while Wall Street obsesses over ad revenue, smart money's watching their blockchain moves.
Cloud Dominance Meets Web3
Google Cloud's becoming the backbone for crypto infrastructure. Enterprise validators, node services, BigQuery blockchain analytics—they're building the pipes while everyone watches the faucets.
AI Arms Race Fueling Growth
Their AI division's sucking up more power than a Bitcoin mining farm. Gemini upgrades, search algorithm overhauls—this isn't just tech spending, it's digital land grabbing.
The Regulatory Shield
While crypto exchanges play regulatory whack-a-mole, Google's sitting pretty with compliance teams bigger than some national banks. Boring? Maybe. Profitable? Definitely.
Bottom line: They report earnings like a traditional tech giant while quietly becoming crypto's favorite landlord. The stock might not moon overnight—but it's building the launchpad.
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As a matter of fact, five-star JPMorgan analyst Doug Anmuth recently increased his price target on Google from $260 to $300 while maintaining a Buy rating. Interestingly, he said that a major risk had been removed after Google won its trial with the Department of Justice over search agreements. On top of that, the company continues to deliver strong financial performance and is a leader in AI innovation. Additionally, even though Google’s stock is now valued more like Meta’s (META), the firm still sees plenty of reasons to be optimistic and believes that the stock could rise much further.
Similarly, KeyBanc, led by five-star-rated Justin Patterson, also raised its price target on Google to $300 from $265 and kept a Buy rating. The firm expects Q3 results to show strong momentum across the Search, Cloud, and Waymo business units, thanks to faster product development. Indeed, Google’s Search and Cloud segments have been the company’s main growth drivers over the past several years, as indicated by the image below. KeyBanc also pointed out that Google’s stock doesn’t look overpriced, since it’s trading at only a 1.5x forward earnings premium compared to the S&P 500 (SPY). This suggests there’s still room for the stock to grow.
What Do Options Traders Anticipate?
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. Indeed, the at-the-money straddle suggests that options traders expect a 6.6% price MOVE in either direction. This estimate is derived from the $270 strike price, with call options priced at $8.60 and put options at $9.13.
Is Google Stock a Good Buy?
Overall, analysts have a Strong Buy consensus rating on GOOGL stock based on 28 Buys and eight Holds assigned in the past three months. Furthermore, the average GOOGL price target of $267.53 per share implies that shares are trading NEAR fair value. At the same time, TipRanks’ AI analyst has an Outperform rating with a $302 price target.
