Alphabet to report earnings: AI, ad momentum key to the fourth quarter

Alphabet is poised to announce its fourth-quarter earnings this Wednesday, and analysts are keenly anticipating the results. As the tech giant continues to capture Wall Street's attention, expectations are high for its financial performance and strategic developments. In the past six months, Alphabet's stock has surged over 70%, solidifying its status as one of the top performers in 2025. Notably, the company recently joined the exclusive $4 trillion club alongside industry leaders like Nvidia, Microsoft, and Apple. Investors are particularly interested in the potential implications of Google's recent partnership with Apple, aimed at enhancing the AI capabilities of Siri through the use of Gemini's advanced models, which could reach an impressive user base of 2.5 billion active devices. The fourth quarter saw several significant announcements from Google. In November, the highly anticipated Gemini 3 models were launched to positive reviews, while the next generation of tensor processing units, known as Ironwood, was also unveiled. Moreover, Alphabet's autonomous vehicle division, Waymo, marked a significant milestone by expanding its robotaxi services to major freeways across three U.S. cities. Amin Vahdat, head of Google's AI infrastructure, emphasized the need for the company to double its serving capacity every six months to keep pace with the soaring demand for AI services. He noted that the competition in AI infrastructure is both critical and costly, underscoring the urgency of this sector. In a strategic move, Alphabet announced its acquisition of data center company Intersect for $4.75 billion, reflecting its commitment to bolster its infrastructure. Additionally, the launch of new AI features, such as "Personal Intelligence," aims to enhance user experience by integrating information from various Google applications. As the AI landscape evolves, Google is also establishing a foothold in AI-powered commerce with the introduction of the Universal Commerce Protocol for AI shopping agents. Recent developments include the recruitment of top talent from the AI voice startup Hume AI to further enhance Gemini's capabilities. On the legal front, Google is appealing a federal ruling that found it held an illegal monopoly in internet search, which could impact the company's operations while the case unfolds. Meanwhile, Waymo's service expansion into Miami and a significant funding round that values the company at $126 billion highlight its ongoing growth. As 2025 concludes, Waymo reports having completed 15 million trips across five major U.S. markets, including Austin and Los Angeles, showcasing the increasing demand for its services.