Analysts highlight three pillars supporting a bullish thesis on Alphabet before its Feb. 4 report: enriched AI-powered search entering commercial scale, accelerated monetization of Gemini AI—including a landmark agreement to power Siri on Apple devices—and robust Google Cloud momentum, which delivered 34% year-over-year revenue growth and sits on a $155 billion backlog. These drivers come against a backdrop of elevated valuation at 30× forward earnings, ongoing antitrust investigations in both the U.S. and EU, and planned capital expenditures of $91 billion to $93 billion in 2025 for data centers and AI infrastructure that may constrain free cash flow in the near term. Investors will be watching whether revenue beats and margin expansion can offset rising operating costs and regulatory provisions.

Waymo, Alphabet’s autonomous driving division, is finalizing a $16 billion funding round that will value the unit at approximately $110 billion—more than double its previous valuation—according to people familiar with the deal. Google is expected to contribute over 75% of the new capital. Waymo reports annual recurring revenue north of $350 million, and the round was oversubscribed threefold. The self-driving service has completed over 20 million commercial trips, logged 125 million fully autonomous miles on U.S. roads with a near-zero safety incident rate, and projects scaling to 1 million rides per week this year across cities such as San Francisco, Los Angeles, Phoenix and Miami. The company is expanding partnerships—bookings are available via its app and through Uber in select markets—and plans to deploy unsupervised autonomous driving in dozens of U.S. cities pending regulatory approval, even as it ramps capital spending above $20 billion this year to broaden its technology portfolio into humanoid robotics and advanced AI systems.