Alphabet earnings offer a moment of truth in tech stock battle

Alphabet, Google's parent company, is set to report its quarterly earnings, a pivotal moment for investors debating the value of massive AI spending. The results will show whether the company's heavy investment in artificial intelligence, particularly in cloud computing, is paying off. This matters because Alphabet is competing fiercely with Microsoft and Amazon in the cloud market, where AI services are becoming a key differentiator. The earnings report, due this week, will include figures on cloud revenue growth and overall profit. Analysts expect cloud revenue to rise about 28% from a year ago to $10.1 billion, while total revenue may increase 14% to $84.9 billion. Alphabet has doubled its capital expenditure to $12 billion this quarter, much of it on AI infrastructure. The company also recently delayed the launch of its Gemini 3.5 model, raising questions about its AI development pace. The upcoming results will test whether such spending is boosting growth or squeezing margins. Next steps: investors will watch for guidance on future AI investments and cloud momentum, which could sway the stock's direction.