Alphabet's performance exceeded expectations

Google's parent company Alphabet's third-quarter earnings report exceeded market expectations, mainly due to strong growth in its Cloud Services business.The company's total revenue for the third quarter reached $88.27 billion, exceeding expectations of $86.3 billion, and earnings per share (EPS) were $2.12, also above expectations of $1.85.

Among them, Google Cloud performed well, with revenue reaching US$11.35 billion, far exceeding analysts 'expectations of US$10.88 billion, a year-on-year increase of 35%.The company relies on artificial intelligence-driven products to help corporate customers expand, especially in the field of cloud services, which has become a key growth point.CEO Sundar Pichai particularly emphasized the supporting role of AI technology in corporate customers.

The advertising business, as Alphabet's main source of revenue, maintained growth, with advertising revenue reaching US$65.85 billion this quarter.Although advertising growth slowed slightly amid intensified competition from platforms such as TikTok and Netflix, YouTube's advertising revenue still exceeded expectations to reach $8.92 billion, indicating that demand for digital advertising remains strong.Alphabet shares rose 4% in after-hours trading after the earnings report.

Other major companies' earnings performance

• Advanced Micro Devices（AMD）

AMD reported earnings per share in line with expectations, reaching $0.92, and total revenue slightly exceeded expectations, at $6.82 billion.The data center division performed strongly, with sales doubling year-on-year, mainly due to high demand for AI chips.However, the company's fourth-quarter revenue guidance was flat, investors responded cautiously, and AMD shares fell 5% in after-hours trading.

• Snap

Snap exceeded revenue and earnings per share forecasts in the third quarter, with EPS of $0.08 (expected to be $0.05) and revenue slightly exceeded expectations at $1.37 billion.However, conservative guidance in the fourth quarter dampened some investor sentiment.The company also announced a $500 million share repurchase plan, and its share price rose more than 10% after the earnings report.

• Chipotle Mexican Grill

Chipotle's third-quarter results were mixed, with earnings per share of $27, slightly above expectations of $0.25, but revenue fell short of expectations, recording $2.79 billion (expected $2.82 billion).Same-store sales increased 6%, missing the expected 6.3%.The company's share price fell 7% in after-hours trading as the increase in portions increased food costs and affected profitability.

• Reddit

Social media company Reddit's third-quarter results exceeded market expectations, with earnings per share of $0.16, which beat expectations for a loss per share of $0.07, and revenue of $348.4 million, which exceeded expectations of $312.8 million.The company also raised its fourth-quarter revenue forecast to range from $385 million to $400 million, well above analysts 'expectations.Shares surged 22% in after-hours trading after the earnings report.

Market Outlook

Today's earnings report sends optimistic signals from the technology sector, especially Alphabet's excellent expansion in cloud services, although some companies are more cautious about future expectations.Alphabet's strong performance provided a short-term boost to technology stocks, while Snap and Reddit showed resilience in the social media space.In contrast, AMD and Chipotle could face pressure until a stronger economic environment drives consumer and business spending.