Alphabet is set to announce its third-quarter results with steady performance expected, but investor attention remains intensely focused on the company’s forward-looking Artificial Intelligence (AI) strategy. According to Lale Akoner, global market analyst at eToro, the deep integration of AI across Google’s core ecosystem is fundamentally reshaping Alphabet’s business model and paving the way for long-term, innovation-led growth.
Digital advertising remains a stronghold for Alphabet, bolstered by AI-powered tools such as Performance Max, which help advertisers improve targeting and drive higher conversion rates. Furthermore, Google Cloud is positioned for another solid quarter, driven by sustained enterprise demand for AI infrastructure.
Reshaping search and monetisation
The company’s most significant strategic move involves integrating AI directly into its core search function, a bold step that could redefine its primary business. While this integration may introduce temporary volatility to ad revenue, Akoner notes that it simultaneously opens new avenues for monetisation in the long term.
“Investors will be watching closely not just at what Alphabet has delivered, but at its next moves,” said Lale Akoner.
The company’s immense scale, vast data assets, and established leadership in AI infrastructure provide crucial resilience as it navigates this next major shift in online search and competitive pressure from rivals like OpenAI and Meta. Analysts have warned that some short-term volatility may occur around the earnings release, yet Alphabet’s long-term prospects remain strong as it positions itself at the forefront of AI-driven transformation.
