Alphabet’s Q4 Beats Estimates, Analysts Lift Targets Amid Cloud Strength
Alphabet posted $113.83B in Q4 revenue, topping $111.43B estimates, as DA Davidson raised its target to $310 and Cantor Fitzgerald reiterated a $370 target citing robust cloud demand. Jim Cramer highlighted 750M Gemini monthly users, lauded Cloud head Thomas Kurian’s performance and emphasized accelerated data-center depreciation will boost margins.
1. Q4 revenue beat and cloud momentum
Alphabet delivered Q4 revenue of $113.83B, exceeding estimates of $111.43B, driven by sustained growth in Google Cloud. Enterprise demand for cloud services continued to strengthen following significant data-center investments.
2. Analyst price target revisions
After the earnings release, DA Davidson lifted its price target to $310 with a Neutral rating, citing expanding enterprise cloud adoption. Cantor Fitzgerald retained an Overweight rating and a $370 target, highlighting Alphabet’s leadership in AI and strategic capital spending.
3. Cramer’s remarks on Gemini uptake
Jim Cramer noted Gemini’s rapid adoption with 750M monthly active users and described this uptake as “incredible.” He compared Cloud leader Thomas Kurian to “LeBron James” for his performance and praised YouTube’s shift toward higher-margin subscriptions.
4. Depreciation strategy and margin outlook
Alphabet is leveraging accelerated bonus depreciation on data-center equipment under current tax provisions, enabling immediate write-offs. This approach is expected to enhance free cash flow and operating margins in upcoming quarters.