Alphabet stock surges in premarket as Q2 earnings reinforce investor confidence

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Sholanke Dele

24.07.2025

Alphabet stock surges in premarket as Q2 earnings reinforce investor confidence — Alphabet jumps 3.5%

Alphabet Inc. shares are up 3.5% in Thursday’s premarket session after the company delivered stronger-than-expected second quarter results.

The report, released after the U.S. market closed on Wednesday, confirmed the underlying investor optimism that had lifted GOOGL to a 10-day streak of consecutive gains prior to Wednesday’s slight pullback.

- Alphabet jumps 3.5% after strong Q2 earnings beat on both EPS and revenue

- Google Cloud revenue surged to $13.6B helping drive the biggest upside surprise

- GOOGL begins to fill February’s tariff gap as bullish Q2 confirms underlying investor optimism

Investors took a step back on Wednesday ahead of the release, causing the stock to close marginally lower and print a bearish daily candle. That decline ended a notable winning streak but set the stage for a sharp reaction post-earnings. Alphabet reported earnings per share of $2.31, beating the $2.18 estimate and rising from $1.89 a year ago. Quarterly revenue came in at $96.4 billion, above forecasts of $94.0 billion, and marked a 14% increase from last year’s figure.

GOOGL price dynamic (Dec 2024 - July 2025). Source: Tradingview

The outperformance was driven primarily by Google Cloud, which recorded $13.6 billion in revenue for the quarter. That figure surpassed the $13.1 billion projection and represented a 32% year-on-year gain. Management highlighted that the number of deals above $250 million doubled compared to the same period last year. In fact, the number of billion-dollar contracts in the first half of 2025 already equals the total reached in all of 2024.

Alphabet earnings beat $2.31 vs. $2.18 estimate, while revenue tops $96.4B

Alphabet’s advertising business also exceeded expectations. YouTube ad sales grew 13% from last year, while overall ad revenue rose 10%. Subscriptions are becoming a more meaningful component of YouTube’s revenue stream, reinforcing the platform’s diversification strategy and strengthening recurring revenue visibility.

As of the premarket session, GOOGL is trading at $196.3. This level begins to fill the gap created by the February selloff, when the stock was hit by renewed U.S. tariff rhetoric from President Trump. Since that dip, Alphabet shares have been steadily climbing, supported by fundamental performance and a resilient earnings narrative.

Investors have effectively shrugged off macroeconomic distractions, including tariff threats, in favor of strong quarterly delivery. The current move in price reflects renewed appetite for quality tech stocks anchored on growing cloud business, solid advertising revenues, and positive guidance. Alphabet’s Q2 report has validated the bullish positioning seen throughout the second quarter and suggests the stock could soon retest its previous all-time high.

Alphabet stock rose as investors reacted positively to new tech and AI partnerships. It broke $181 resistance and reached $183.70 as RSI climbed above 61, confirming bullish strength.

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