Artem Voloskovets
Alphabet Inc. (GOOGL) delivered a jaw-dropping surprise on October 29, 2025, sending its stock rocketing more than 7% in minutes after the closing bell. The tech giant crushed Q3 expectations with results powered by surging demand for AI-driven ads and Google Cloud services.
What Happened: A Vertical Breakout in Action
As captured by The Kobeissi Letter, this breakout shows Alphabet is proving itself as a major AI winner—not just with promises, but with actual results that have investors rushing back in.
The chart tells the story clearly. For most of the trading day, Alphabet's shares hovered quietly between $272 and $276. Then, the moment earnings dropped, the stock shot straight up—jumping from $276 to $295.51 in a single powerful move. This wasn't a gradual climb; it was a vertical spike that screamed institutional buying and algorithmic momentum all at once.
Key Takeaways:
- Breakout Level: $276 resistance shattered instantly
- Close: $295.51, the highest in months and near the day's peak
- Volume: Massive spike indicating strong conviction buying
- Next Target: $300 psychological level, with $310–$315 beyond that
- Support: Now sits around $280–$285 if pullbacks occur
The technical setup heading into Q4 looks decisively bullish, with the stock completing a multi-week consolidation and establishing fresh upward momentum.
Alphabet didn't just beat expectations—it blew past them. Revenue hit $90.6 billion versus the $88.5 billion analysts expected, while earnings per share came in at $2.13, easily topping the $1.97 forecast. YouTube ads grew 15% year-over-year thanks to AI-powered recommendations and better ad targeting, while Google Cloud surged 24% as companies race to adopt AI infrastructure.
CEO Sundar Pichai made it clear this is just the beginning, emphasizing that Alphabet's next phase will focus on "scaling AI across every product line"—from Search to Workspace to Android. What was once criticized as expensive AI spending is now paying off in real revenue and profit growth.
Why It Matters: The AI Trade Is Back
Alphabet's blowout results reignited excitement across the entire AI and Big Tech space. Microsoft, NVIDIA, and Amazon all saw after-hours gains, signaling a broader shift back into AI-linked stocks. Unlike earlier hype cycles, investors now want proof—and Alphabet just delivered it.
This rally positions Alphabet right alongside NVIDIA as a leader in the AI-driven market cycle, combining massive scale with reliable profitability. It's also giving the broader NASDAQ-100 a much-needed psychological boost after a cautious start to earnings season.
With the stock now sitting just below $300 and momentum on its side, all eyes are on whether Alphabet can keep climbing—or if short-term profit-taking will create a buying opportunity for those who missed the initial surge.
Artem Voloskovets
