Suffice it to say, Alphabet (NASDAQ:GOOGL) has not been one of the market’s big stars during the first half of 2025. Though the technology giant has gained some 30% since a post-Liberation Day lull in early April, this has not been sufficient to claw back all of its losses from the first few months of the year. All told, GOOGL is down some 2% for 2025.
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There are many factors that sway the narrative surrounding a company as big as Alphabet, but first among equals seems to be the impact of AI. Indeed, one of the big fears is that LLMs could replace queries using Alphabet’s search engine, leading to decreased ad sales – far and away the company’s biggest source of revenue.
One top investor known by the pseudonym Deep Value Investing will be paying close attention to these search figures during the company’s upcoming Q2 2025 earnings on July 23. That being said, the 5-star investor is not too concerned.
“Overall, I remain bullish going into earnings, as I don’t expect to see a major decline in revenue due to AI,” explains Deep Value Investing, who is among the top 3% of TipRanks’ stock pros.
Of course, Alphabet has many irons in the fire, and there are numerous reasons for Deep Value Investing’s overall optimism.
This includes the recent announcement that Google has become one of OpenAI’s cloud infrastructure providers. Deep Value Investing calls this a “major catalyst” for Alphabet, one that could even place Google Cloud Platform on par with Microsoft’s Azure in the years to come.
The investor is also quite keen on Alphabet’s Waymo self-driving cars, noting that the company is “obliterating Tesla” in the race for the robotaxi market. The company is expanding its self-driving service to other cities – and countries – and additional progress on this front on the upcoming earnings call could provide another boost for GOOGL.
“A concrete date for the international expansion would be highly bullish for the stock,” the investor adds.
Summing up, Deep Value Investing is happy to reiterate an “ultra bullish” stance on GOOGL just prior to the company’s Q2 earnings report.
“I expect Google to deliver strong Q2 2025 results, with double-digit growth in both EPS and revenue,” predicts Deep Value Investing, who is assigning GOOGL a Strong Buy rating. (To watch Deep Value Investing’s track record, click here)
This mirrors the general view on Wall Street as well. With 29 Buy and 9 Hold ratings, GOOGL enjoys a Strong Buy consensus rating. Its 12-month average price target of $205.59 has an upside of ~11%. (See GOOGL stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.