Should You Buy Alphabet Before July 22?
2026-07-17 08:03
•Adria Cimino •The Motley Fool
••••• ••••• Axe Capital view
Is Alphabet a Buy Ahead of Earnings?
Alphabet shows solid growth in ads and cloud, making it a tempting buy before July 22 results.
Alphabet’s upcoming earnings report deserves attention. Advertising is still the cash cow, growing 15% year-on-year, reassuring the core revenue stream isn’t just AI hype. Meanwhile, cloud revenue is exploding, up 60%, largely powered by their new AI assistant, Gemini, now with nearly 28% market share in its category. At a 25x forward earnings multiple, it’s reasonably priced, especially compared to other tech giants. While Alphabet doesn’t have a direct JSE equivalent, the USD/ZAR rate matters here. A weaker rand could make holding US dollar tech stocks like Alphabet more attractive to South African investors seeking diversification. However, local investors should be wary of dollar strength risks that could amplify rand losses. If global tech stumbles or regulation hits hard on ad revenues, the good numbers might not hold. Still, Alphabet’s fundamentals beyond AI seem firm, balancing growth and valuation neatly—worthy of a buy in my book. this is just my opinion and not financial advice
I would add Alphabet exposure through direct USD holdings or offshore funds before earnings but keep an eye on USD/ZAR moves for timing the rand impact.
- Alphabet (GOOG)
- USD/ZAR
- US tech regulation impacting advertising revenue
- Dollar strength increasing rand conversion risk
7/10
Alphabet is recommended as a buy ahead of its July 22 earnings report, driven by strong performance in advertising (70% of revenue, up 15% YoY) and explosive cloud growth (60% revenue increase to $20B). The company's AI assistant Gemini has captured 27.7% market share, and AI solutions are driving cloud revenue. Trading at a reasonable 25x forward earnings, Alphabet appeals to both conservative and aggressive investors as it has strong fundamentals beyond AI while benefiting from the AI boom.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Adria Cimino
Categories: Equities, Earnings, Technology, AI, Semiconductors
Tickers: GOOG, GOOGL, GOOGM, GOOGN, ASML
Sentiment: Positive - Strong revenue growth in advertising (15% YoY) and cloud business (60% growth), successful AI integration with Gemini gaining significant market share (27.7%), reasonable valuation at 25x forward earnings, and solid fundamentals independent of AI trends make it an attractive investment opportunity. Increased annual sales forecast for the second time in 2026 due to high AI chip demand, indicating strong market conditions that benefit the broader AI ecosystem including Alphabet.
Keywords: Alphabet, Google Search, artificial intelligence, Gemini, Google Cloud, earnings report, advertising revenue, AI assistant market share
Insights:
- GOOG: Positive: Strong revenue growth in advertising (15% YoY) and cloud business (60% growth), successful AI integration with Gemini gaining significant market share (27.7%), reasonable valuation at 25x forward earnings, and solid fundamentals independent of AI trends make it an attractive investment opportunity.
- GOOGL: Positive: Strong revenue growth in advertising (15% YoY) and cloud business (60% growth), successful AI integration with Gemini gaining significant market share (27.7%), reasonable valuation at 25x forward earnings, and solid fundamentals independent of AI trends make it an attractive investment opportunity.
- GOOGM: Positive: Strong revenue growth in advertising (15% YoY) and cloud business (60% growth), successful AI integration with Gemini gaining significant market share (27.7%), reasonable valuation at 25x forward earnings, and solid fundamentals independent of AI trends make it an attractive investment opportunity.