While Alphabet Inc.’s robust quarterly earnings provide a solid foundation, investor attention is increasingly captivated by the potential standalone valuation of its self-driving subsidiary, Waymo. This focus on future potential arrives alongside a period of short-term technical weakness for the stock, though its long-term growth narrative remains firmly intact.
Strong Quarterly Results Underpin the Narrative
The speculative excitement surrounding Waymo is grounded in Alphabet’s continued operational strength. For Q3 2025, the company reported revenue of $102.35 billion, a 15.9% year-over-year increase that surpassed market expectations of $99.90 billion. Profitability also impressed, with earnings per share coming in at $2.87, significantly higher than the $2.29 forecast.
This performance demonstrates Alphabet’s ability to maintain healthy margins while funding ambitious expansions in artificial intelligence infrastructure, cloud computing, and future projects like Waymo. Key financial metrics from the quarter include:
- Revenue: $102.35 billion (+15.9% YoY, above consensus)
- EPS: $2.87 (well above the expected $2.29)
- Cloud Growth: BMO Capital anticipates further accelerated growth of 39% for Google Cloud in Q4 2025.
- Dividend: A quarterly dividend of $0.21 per share, payable on December 15, 2025.
This blend of growth, earnings power,
Waymo Emerges as a Standalone Value Driver
The primary catalyst for renewed investor interest is Waymo. Reports indicate the subsidiary is negotiating an external funding round of approximately $15 billion, which could value the autonomous driving unit at up to $100 billion. Such a move would highlight the inherent value of Alphabet’s “Other Bets” beyond its core advertising business.
Operational progress supports this ambitious valuation. In Q3 2025, Waymo’s rider-only miles increased by 24% quarter-over-quarter, adding a total of 28 million miles. Phoenix remains its strongest operational area, accounting for 10 million of those miles, followed closely by San Francisco and Los Angeles with roughly 9 million miles each.
Analysts at Citizens maintain an optimistic “Market Outperform” rating with a $340 price target. They note that Waymo’s growth is currently constrained more by vehicle supply than by consumer demand—a dynamic viewed positively as an indicator of long-term pricing power once scale is achieved.
Market Analysts Weigh In with Varied Perspectives
The institutional view remains broadly constructive despite recent share price volatility. BMO Capital raised its Alphabet price target to $343, citing persistent momentum in the cloud segment and the deep integration of AI across the product ecosystem. From current levels, this implies a high single-digit percentage upside.
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A more cautious stance comes from Cantor Fitzgerald, which reaffirmed a “Neutral” rating and a $310 target—close to the prevailing trading range. The firm acknowledges strong user growth for the AI assistant Gemini but expresses hesitation about the speed at which this engagement will translate into measurable revenue.
Collectively, analyst commentary paints a picture of continued optimism tempered by uncertainty regarding the monetization timeline for new AI and autonomous driving services.
Technical Indicators Signal Short-Term Consolidation
From a chart perspective, the stock has recently entered a softer phase. Alphabet shares currently trade around €253.50, roughly 7% below their level from a week ago. However, they maintain a clear upward trajectory on a twelve-month view, showing a gain of over 36%.
In US trading on December 17, 2025, the Class C shares (GOOG) fluctuated between $303.83 and $311.85. Technically, the stock has broken below its 20-day Exponential Moving Average, signaling near-term weakness. The Relative Strength Index confirms increased selling pressure in intraday trading, though not yet reaching oversold territory.
Traders are watching the $303 zone as a key short-term support level. A sustained drop below this could open a path toward the psychologically significant $300 mark. On the upside, a recovery above approximately $311 would be needed to neutralize the current bearish setup and refocus attention on the primary bullish trend.
Conclusion: Long-Term Trajectory Holds Amid Near-Term Turbulence
The current landscape is distinctly bifurcated. Fundamentally, Alphabet continues to deliver with strong revenue and earnings growth, while Waymo’s potential $100 billion valuation adds a new layer of speculative appeal. Concurrently, the technical pullback and clear resistance near $310 create short-term headwinds.
In the coming weeks, two factors will likely be decisive: first, any concrete announcements regarding Waymo’s external financing; and second, whether Alphabet can meet or exceed the forecasted 39% cloud growth in Q4 2025. Together, these developments will determine if the stock can break upward from its consolidation phase or enter a more prolonged period of pause.
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