Here's the scoop: Alphabet is preparing a big surprise for the market before releasing its quarterly earnings.

Google and YouTube’s parent company is about to release its Q4 financial results, and this event is already causing significant excitement in the market. Investors and traders expect that the company’s performance data could dramatically change the stock price trajectory toward new all-time highs.

The options market is already signaling that participants are preparing for substantial stock price jumps. Traders estimate that fluctuations could exceed five percent from the current level. This means that after the results are announced, the stock could either fall to around $328 or rise above $362, continuing its series of triumphant climbs to new records.

Over the past year, Alphabet’s shares have broken through historical highs several times. Since the previous quarterly report in October last year, the stock has increased by approximately 25%. At that time, the company achieved a historic milestone by surpassing $100 billion in quarterly revenue for the first time in its history.

Artificial Intelligence as the Main Growth Driver for Alphabet and Its Challenges

Despite concerns that periodically arise within the investment community regarding expenses and profitability related to AI development, Alphabet’s shares continue to show steady growth. This situation is notably different from what happened with competitors — Meta Platforms and Microsoft published their earnings reports, and their stocks reacted differently to news about AI investment plans.

Analysts’ consensus suggests that the company’s revenue for Q4 will reach $111.37 billion, a 15% increase compared to the same period last year. Adjusted earnings per share are expected to be $3.09, representing an increase of over 20%.

HSBC experts highlighted several key aspects to watch when analyzing the quarterly results. Focus areas include management comments on expanding Google Cloud’s capacity to meet the growing demand for AI services. Equally important are data on search engine dynamics, AI mode usage in Google Search, and announced capital expenditure plans for the coming years.

Investors are also closely monitoring news about the possible integration of Google Gemini technology by Apple into its updated Siri voice assistant and other AI tools. This collaboration could become a significant factor in long-term development.

Why Analysts Remain Confident in Alphabet’s Stock Potential

Most financial analysts tracked by the platform Visible Alpha maintain a positive outlook on the company’s prospects. Out of 15 experts whose opinions are aggregated by this platform, twelve recommend buying Alphabet shares, while three suggest holding. There are no analysts recommending selling.

According to Visible Alpha data, the average target price for the stock is $350, indicating further growth potential. This unanimous position among experts reflects high confidence in the company’s AI development strategy and its ability to generate substantial income from these investments. Analysts expect the stock to continue setting new highs, making Alphabet one of the main beneficiaries of the global trend toward AI technology development.