News
Thursday, October 30, 2025
What’s happening: Shares of Alphabet rose sharply in after-hours trading on Wednesday, following the release of the company’s third-quarter results.
What happened: Alphabet posted better-than-expected sales and earnings for the latest quarter.
The company crossed $100 billion in quarterly revenues for the first time in its history and raised its 2025 capex guidance.
How were the results: The Mountain View, California-based company reported low double-digit sales growth for the third quarter.
Why it matters: Soaring demand for AI provided a boost to Alphabet’s results for the quarter, sending revenue from the company’s core advertising and cloud computing segments much higher than estimates.
Revenues from Google Search surged to $56.57 billion, from $49.39 billion in the year-ago quarter. Revenues from Google Cloud, one of Alphabet’s fastest-growing segments, jumped 34% to $15.16 billion, driven by strong enterprise demand for the company’s AI infrastructure.
Google ad revenue climbed to $74.18 billion, signalling strong demand for the digital ad market despite concerns around the economy and stiff competition.
Alphabet guided to capital expenditures of $91-$93 billion for 2025, up from its original estimate of $75 billion in February and from $85 billion announced in July. The company had spent $52.5 billion in 2024.
Alphabet said that Gemini now has more than 650 million monthly active users, up from 450 million in the previous quarter. The company also reported that the backlog for Google Cloud had risen to $155 billion.
“Our full stack approach to AI is delivering strong momentum and we’re shipping at speed, including the global rollout of AI Overviews and AI Mode in Search in record time,” CEO Sundar Pichai said.
How shares responded: Alphabet’s shares jumped 6.7% to close at $293.01 in after-hours trading on Wednesday. The stock has surged around 71% over the past month.
What to watch: Investors will continue monitoring rising competition in the AI and cloud businesses, with peers announcing aggressive price cuts and new capabilities for GenAI.
Context: The AUD/USD forex pair gained this morning amid weakness in the US dollar.
Details: Data released this morning showed Australia’s export prices fell by 0.9% in the third quarter, compared to a 4.5% decline in the previous quarter. This marked the second decline this year.
Australia’s import prices fell 0.4% in the third quarter, easing from a 0.8% plunge in the previous quarter, but more than market estimates of 0.3%. The latest reading marked the second straight quarterly decline in import prices.
Meanwhile, Australia’s annual inflation rate accelerated to 3.2%, from 2.1% in the previous quarter. It was the highest reading since the second quarter of 2024.
Weakness in the greenback lent support to the AUD/USD forex pair. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell 0.1% to 99.04 this morning.
The AUD/USD forex pair gained over 0.2% to 0.6590 this morning, while the S&P/ASX 200 fell 0.1% to trade at 8,917.20.
What to watch: Investors await the release of economic data on PPI (0430 UAE Time), housing credit (0430 UAE Time) and private sector credit (0430 UAE Time) from Australia on Friday. Australia’s final demand Producer Price Index, which rose by 0.7% in the second quarter, is expected to surge by 0.8% in the third quarter.
Analysts expect housing credit in Australia to rise by 0.6% in September, while private sector credit is projected to grow by 0.5% following a 0.6% gain in August.
Other Markets: European indices closed mostly lower on Wednesday, with the DAX 40, CAC 40 and STOXX Europe 600 Index down by 0.64%, 0.19% and 0.06%, respectively, and the FTSE 100 up by 0.61%.
Ukraine’s President Volodymyr Zelenskyy said he was ready for peace negotiations with Russia, without ceding further territory as demanded by Moscow. The news sent the RUB/USD pair lower in forex trading this morning.
Philippines’ trade deficit shrank to $4.35 billion in September, from $5.10 billion in the year-ago period, which lent support to the PHP/USD forex pair.
The Macau Monetary Authority slashed its base rate by 25 basis points to 4.25% at its latest meeting, which sent the MOP/USD pair lower in forex trading this morning.
New Zealand’s ANZ Business Outlook Index surged to 58.1 in October, from 49.6 in the previous month. Business sentiment surging to its highest level since February lent support to the NZD/USD forex pair.
Colombia’s Industrial Confidence Index climbed to 9.0 in September, from 5.3 in the previous month. However, the COP/USD pair edged lower in forex trading this morning.
Spain’s inflation rate (1200 UAE Time) and business confidence (1600 UAE Time), Germany’s unemployed persons (1255 UAE Time), unemployment change (1255 UAE Time), unemployment rate (1255 UAE Time), GDP growth rate (1300 UAE Time) and inflation rate (1700 UAE Time), Italy’s GDP growth rate (1300 UAE Time), unemployment rate (1400 UAE Time), 10-year BTP auction (1410 UAE Time), 5-year BTP auction (1410 UAE Time) and industrial sales (1500 UAE Time), South Africa’s PPI (1330 UAE Time), Eurozone’s GDP growth rate (1400 UAE Time), economic sentiment (1400 UAE Time), unemployment rate (1400 UAE Time), consumer confidence (1400 UAE Time), consumer inflation expectations (1400 UAE Time), industrial sentiment (1400 UAE Time), selling price expectations (1400 UAE Time), services sentiment (1400 UAE Time) and European Central Bank’s interest rate decision (1715 UAE Time), UK’s Treasury Gilt 2030 auction (1400 UAE Time), Brazil’s IGP-M inflation (1500 UAE Time), India’s M3 money supply (1530 UAE Time), Mexico’s GDP growth rate (1600 UAE Time), US EIA natural gas stocks change (1830 UAE Time), NY Fed Treasury purchases TIPS 7.5 to 30 yrs (1830 UAE Time), 4-week Bill auction (1930 UAE Time), 8-week Bill auction (1930 UAE Time), 15-year Mortgage Rate (2000 UAE Time) and 30-year Mortgage Rate (2000 UAE Time), as well as Canada’s 2-year Bond auction (2000 UAE Time).