A megadeal among some of the biggest tech companies out there has recently made headlines, with Alphabet (NASDAQ:GOOGL) agreeing to provide cloud computing services to Meta Platforms for six years in a deal worth more than $10 billion.
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This new development follows a strong surge in Alphabet’s cloud business, which recently reported a 32% increase in revenues in Q2 2025. It has been a strong couple of months for GOOGL, which has seen its share price increase by more than 40% since the post-Liberation Day doldrums in early April.
Are more gains on the horizon? Top investor Brett Ashton Green believes they certainly could be.
“This deal highlights the growing demand for advanced cloud infrastructure to support large-scale data analytics and AI workloads,” says the 5-star investor, who is among the top 4% of TipRanks’ stock pros.
It is not just the additional revenues that Alphabet is acquiring from the Meta deal, notes Ashcroft Green, though the annualized $1.6 billion in sales does add about 3% in new growth. In addition, the investor points out that this deal opens up the possibilities for further partnerships with the aggressive capex spender.
“If all goes well, we might assume that Meta would give even more business to Google than just this initial deal,” adds Ashcroft Green.
Moreover, there could be more strong growth engines for Alphabet coming down the pike. The investor cites a potential agreement with Apple to power the iPhone maker’s voice assistant Siri.
And yet, in spite of the recent gains, GOOGL remains the most cheaply priced Magnificent 7 member “by a long shot.” Ashcroft Green points out that its Forward Price-to-Earnings multiple of 20.88x falls well below its peers.
There are some risks, of course, such as the potential for growth rates in search and ads to start slowing. This, coupled with the share price gains over the past few months, is giving Ashcroft Green some pause.
And yet, despite some worries that the bull run could indeed start to sputter, for now Ashcroft Green remains committed to GOOGL.
“Still a Buy, but teetering on a Hold should this run another 10% or so,” concludes the investor. (To watch Brett Ashcroft Green’s track record, click here)
That’s where Wall Street finds itself as well. With 27 Buys and 9 Holds, GOOGL enjoys a Strong Buy consensus rating. Its 12-month average price target of $217.25 implies minimal growth in the year ahead. (See GOOGL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.