Alphabet (GOOG, GOOGL) exceeded Wall Street expectations in its third quarter results, revealing exceptional growth in its cloud business segment.

The tech giant reported adjusted earnings of $2.12 per share, above the $1.84 analysts expected. Revenue reached $88.27 billion, topping the estimated $86.45 billion. Google Cloud performance was particularly strong, with revenue of $11.35 billion outpacing estimates of $10.79 billion.

"They're executing extremely well on the cloud side of things," CFRA Research Senior Equity Analyst Angelo Zino tells Market Domination Overtime. He highlights that the cloud division achieved its highest-ever operating margin at 17% this quarter.

Zino identified AI evolution in search as the primary challenge facing Alphabet, noting it's been a key reason investors have been "hesitant on the Alphabet story." However, he remains optimistic about the company's trajectory. Although this will be "a trying time" for the company, Zino said he is "encouraged with how they're adapting to things here," pointing to their innovation efforts.

He concludes that the company is "well positioned" against competitors in the long-term search market.

These are the remaining Magnificent Seven tech stocks scheduled to report earnings this season:

• Meta Platforms (META) and Microsoft (MSFT) — Wednesday, October 30

• Amazon (AMZN) and Apple (AAPL) — Thursday, October 31

• Nvidia (NVDA) — Wednesday, November 20

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.

This post was written by Angel Smith