Google reports its fourth-quarter earnings Wednesday after the bell, and Wall Street wants answers about one thing above all else - the blockbuster deal to power Apple's Siri with Gemini AI. The search giant joins the $4 trillion market cap club riding a 70% stock surge over six months, but now investors need proof that its AI investments can translate into revenue. With analysts expecting $111.43 billion in quarterly revenue and earnings of $2.63 per share according to LSEG data, the earnings call marks Alphabet's first chance to detail how its Gemini partnership with Apple's 2.5 billion devices will reshape the AI landscape.
Alphabet is about to find out if its AI spending spree can satisfy Wall Street's appetite for growth. The company reports fourth-quarter earnings Wednesday after markets close, and the scrutiny has never been higher. With the stock up more than 70% over six months and a freshly minted $4 trillion valuation, Google needs to prove it can turn billions in infrastructure investments into actual revenue.
The headline everyone's waiting for? Details on the recently announced partnership with Apple to integrate Gemini AI into Siri. The deal gives Google's AI models access to Apple's staggering 2.5 billion active devices - arguably the most significant distribution win for any AI company to date. Analysts polled by StreetAccount want to know how Google plans to monetize the partnership and what revenue share arrangements look like.
"This is the validation Google needed," one analyst told CNBC. The Apple deal comes as Google races against -backed and in the increasingly expensive AI infrastructure arms race.
