Alphabet set to report Q4 earnings in test of stock’s rally amid Google’s AI wins

Alphabet (GOOGL, GOOG) is set to report its fourth quarter financial results after the bell on Wednesday amid growing optimism from Wall Street over the Google parent company’s AI leadership.

Analysts tracked by Bloomberg expect revenue to climb more than 15% to $111.4 billion and earnings per share to rise to $2.65 from $2.15 in the year-ago period. The projected jump in revenue is expected to be spurred by a more than 35% rise in Google Cloud revenue to $16.2 billion.

Google Services — the segment including ad revenue from Search and YouTube, which accounts for the majority of Alphabet’s revenue — is estimated to see revenue climb a more modest 13% from the previous year to $94.9 billion, per Bloomberg consensus estimates.

Alphabet stock could rise or fall as much as 5% following its fourth quarter report, according to Bloomberg data.

The stock has soared 25% since its last earnings report showed the tech giant beginning to benefit from a slew of AI deals…