Alphabet Forecasts 50% Cloud Growth and Faces Potential $272.6B Wealth Tax Pressure
Alphabet is expected to report Q1 EPS of $2.62 on revenue of $107B, driven by 50% Y/Y growth in Google Cloud to $18.4B and 13.9% growth in Google Advertising to $76.2B alongside a planned 111% surge in capex to $36.39B. Separately, cofounder Sergey Brin and partner lobbied Governor Newsom against a proposed California billionaire tax that could impact his $272.6B fortune and Alphabet's shareholder environment.
1. Q1 Earnings Expectations
Alphabet is forecast to report Q1 EPS of $2.62 on $107B revenue, with ex-TAC revenue projected at $92B and Google Advertising expected at $76.2B, representing a 13.9% Y/Y rise.
2. Cloud, Gemini, and Capex Plans
Google Cloud revenue is projected to reach $18.4B, a 50% Y/Y increase, as Alphabet advances its Gemini AI model and recently unveiled TPU 8t and TPU 8i chips; capital spending is set to surge 111% Y/Y to $36.39B.
3. Brin's Lobbying on Wealth Tax
Co-founder Sergey Brin and partner Gerelyn Gilbert-Soto privately urged Governor Gavin Newsom at a holiday gathering to oppose a proposed California billionaire tax, which could affect Brin's $272.6B personal stake and shareholder sentiment.