If you’re tracking Google stock (aka Alphabet stock), then you probably sat up straight after their recent Q2 earnings report. Why? Because the numbers didn’t just beat expectations—they screamed confidence in the future, especially when it comes to artificial intelligence (AI).

Let’s break it all down. We’ll unpack what happened, why it matters, and what could be next for Google—and your wallet.

What Happened in Q2? Alphabet Flexes Its Financial Muscle

In its second quarter of 2025, Google (GOOG, GOOGL) posted adjusted earnings per share of $2.31—comfortably beating the $2.17 that Wall Street expected. On the revenue side, they brought in a massive $81.2 billion, excluding traffic acquisition costs (TAC). That’s up from $71.3 billion in the same period last year. Let that sink in: that’s nearly $10 billion in year-over-year growth.

Search and YouTube Are Still Money Machines

Search revenue: $54.1 billion (vs $52.7B expected)
YouTube ads: $9.8 billion (vs $9.5B expected)
Total advertising: $71.3 billion (vs $69.6B expected)

That means the advertising engine is still humming—especially Search, which had double-digit growth. And YouTube? Still a juggernaut.

Google Cloud: Quietly Becoming a Beast

One of the most interesting numbers came from Google Cloud, which posted $13.6 billion in revenue, topping expectations of $13.1 billion. The Cloud platform has grown into a $50 billion annual run-rate business, a milestone that positions Google to challenge AWS and Microsoft Azure seriously.

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Capital Expenditures Explode: What $85 Billion Tells Us

Now here’s the spicy part: Alphabet’s CapEx (capital expenditures) are projected to hit $85 billion, up from a previous estimate of $75 billion. That’s not pocket change—it’s a giant, blinking sign that says: We’re all-in on AI.

Why the Big Spend? AI, AI, and… More AI

Google’s CEO, Sundar Pichai, made it crystal clear. AI is now deeply woven into every corner of Google’s ecosystem. From AI Overviews in Search to AI Mode in YouTube, it’s powering products, enhancing user experience, and of course, generating cash.

But building AI at scale isn’t cheap. It takes massive data centers, state-of-the-art chips (from both Nvidia and Google’s custom designs), and hiring the best AI minds in the world. That’s where the billions are going.

Investor Reaction: Confidence Reaffirmed

So how did the market react? You guessed it: Google stock surged. Investors love strong fundamentals, and this report was dripping with them.

Alphabet Stock Price Climbs

The Alphabet stock price popped immediately after the earnings call. Why? Because investors saw more than just solid financials—they saw a company that’s aggressively building for the future.

If you were on the fence about Google, this earnings report was the equivalent of someone yelling, “Let’s go!” into a megaphone.

Let’s Talk Risks: The Antitrust Cloud

It’s not all sunshine, though. A serious legal storm is brewing. A U.S. judge has ruled that Google violated antitrust laws by using exclusive deals to block competition in search. Potential remedies could include:

Banning default deals with Apple
Forcing Google to sell Chrome, its most popular browser

Either move would seriously shake up Google’s dominance in search. And that could eventually affect their main cash cow: advertising revenue.

But Will the Antitrust Ruling Really Hurt Google Stock?

Here’s the thing. Even with potential legal setbacks, Google’s ecosystem is sticky. Search isn’t just a product—it’s a habit. People don’t “Bing” something. They Google it. Every. Single. Time.

That brand power—and the seamless integration of AI—isn’t easy to shake.

Why Google’s AI Bets May Be Their Best Yet

Think about it: Google isn’t new to AI. It’s been in their DNA for years (hello, Google Translate and TensorFlow). What’s different now is scale and visibility.

AI Is Touching Everything

Search suggestions? Now smarter, thanks to generative AI.
YouTube recommendations? Sharper and more personalized.
Cloud computing? Offering AI models and services to other businesses.

Google is embedding AI into everything it touches—and monetizing it along the way.

Is It Too Late to Invest in Google Stock?

Short answer: Nope. If anything, now’s a very interesting time. Here’s why:

They’re beating earnings consistently
They’re making bold AI investments
The fundamentals are strong
The stock still has upside, especially if the AI strategy continues to pay off

Of course, you should always do your homework or talk to a financial advisor. But from a bird’s eye view? Google stock looks healthy.

The Bottom Line: Google Stock Is Gaining—and It’s No Fluke

Alphabet didn’t just beat Q2 expectations. It crushed them while making a bold $85B bet on AI’s future. From Cloud growth to Search dominance, YouTube performance, and massive CapEx plans—it’s clear: Google is building for a decade of domination.

Sure, the antitrust issue is a curveball. But if their AI engine delivers, and legal threats don’t massively dent their business, Google stock could continue its upward trend.

FAQs

1. Why did Google stock go up after Q2 earnings?

Because Alphabet beat expectations on both earnings and revenue. Investors were also encouraged by the company’s aggressive AI investments.

2. What does Google’s $85 billion CapEx plan include?

It mostly covers expanding AI infrastructure—massive data centers, custom chips, and AI-powered services across Google Cloud and Search.

3. How is YouTube contributing to Google’s revenue?

YouTube brought in $9.8 billion in Q2 ad revenue and continues to grow through ads, subscriptions, and AI-enhanced recommendations.

4. What’s the antitrust case against Google about?

The U.S. government claims Google boxed out rivals by making exclusive deals, especially in search. Remedies could be severe, including breaking up parts of the company.