Should You Buy Alphabet Before July 22?

Alphabet reports earnings July 22 with advertising and cloud momentum building into the print. The company's advertising business—70% of total revenue—grew 15% year-over-year in the most recent period, while cloud revenue surged 60% to $20 billion.

The AI assistant Gemini has captured 27.7% market share, and AI-driven solutions are contributing materially to cloud expansion. Alphabet's forward price-to-earnings multiple stands at 25x, a relatively modest valuation given the dual revenue engines firing. The Motley Fool rates the stock a buy ahead of the quarterly report.

The setup contrasts with many AI plays trading at stretched multiples. Alphabet derives the majority of revenue from its established advertising franchise while cloud acceleration provides upside optionality. The 60% cloud growth rate significantly outpaces the 15% advertising pace, suggesting a revenue mix shift that could support multiple expansion if cloud margins improve.