Alphabet Class C (GOOG) AI Stock Analysis

• Market Cap: $3.35T
• Dividend Yield: 0.29%
• Average Volume (3M): 20.29M
• Price to Earnings (P/E): 27.4
• Beta (1Y): 1.04
• Revenue Growth: 13.55%
• EPS Growth: 34.26%
• Country: US
• Employees: 185,719
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 2.87
• Shares Outstanding: 5,407,000,000
• 10 Day Avg. Volume: 24,531,072
• 30 Day Avg. Volume: 20,287,682
• PEG Ratio: 0.59
• Price to Book (P/B): 7.17
• Price to Sales (P/S): 6.66
• P/FCF Ratio: 32.05
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 7.56
• Enterprise Value/Gross Profit: 12.78
• Enterprise Value/Ebitda: 16.97
• 1Y Price Target: $314.92
• Price Target Upside: 13.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 10.53
• Revenue Forecast (FY): $399.48B

• Rating: 86 Outperform
• Price Target: $328.00 ▲(17.96% Upside)

Alphabet's strong financial performance and positive earnings call sentiment are the most significant factors driving the high overall stock score. The company's robust growth in AI and cloud services, coupled with efficient operations and a solid balance sheet, position it well for future success. While the technical indicators show bullish momentum, the high valuation and low dividend yield slightly temper the score.

Positive Factors

AI and Cloud Services Growth

Strong growth in AI and cloud services indicates robust demand and strategic positioning, supporting long-term revenue expansion and market leadership.

Cash Generation Ability

High cash generation relative to net income ensures liquidity and financial flexibility, enabling sustained investments in growth initiatives.

Balance Sheet Health

Minimal leverage and a strong equity base provide financial stability and resilience, allowing the company to navigate economic fluctuations effectively.

Negative Factors

European Commission Fine Impact

Significant fines can impact profitability and margins, potentially affecting cash flow and limiting resources for reinvestment in growth areas.

Network Advertising Revenue Decline

Declining network advertising revenue suggests competitive pressures and challenges in maintaining growth in this segment, impacting overall revenue.

Regulatory Challenges

Regulatory restrictions on platforms like YouTube can limit user engagement and ad revenue, posing long-term challenges to growth in affected regions.

Alphabet Class C Business Overview & Revenue Model

Company Description

Alphabet Inc. offers various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. It operates through Google Services, Google Cloud, and Other Bets segments. The Google Services segment provides products and services, including ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. It is also involved in the sale of apps and in-app purchases and digital content in the Google Play and YouTube; and devices, as well as in the provision of YouTube consumer subscription services. The Google Cloud segment offers infrastructure, cybersecurity, databases, analytics, AI, and other services; Google Workspace that include cloud-based communication and collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells healthcare-related and internet services. The company was incorporated in 1998 and is headquartered in Mountain View, California.

How the Company Makes Money

Alphabet generates revenue primarily through its advertising business, which includes Google Ads and YouTube ads. These platforms allow advertisers to reach a vast audience, leveraging Google's search data and YouTube's video content to target specific demographics. In addition to advertising, Alphabet earns significant revenue from its Google Cloud services, providing businesses with cloud storage, computing power, and various enterprise solutions. The company also generates income from its hardware sales and subscriptions for services like Google Play and YouTube Premium. Strategic partnerships with other businesses enhance its revenue potential, particularly in cloud computing and data analytics collaborations.

Alphabet Class C Financial Statement Overview

Summary

Alphabet's financial statements demonstrate robust financial health, characterized by strong profitability, efficient operations, and a solid balance sheet. The company maintains low leverage while generating substantial cash flows, positioning it well for future growth and stability in the competitive internet content and information industry.

Income Statement

Alphabet's income statement shows strong profitability with a TTM gross profit margin of 58.94% and a net profit margin of 31.12%. The company has demonstrated consistent revenue growth, with a TTM revenue growth rate of 3.79%. EBIT and EBITDA margins are also robust at 37.71% and 42.47% respectively, indicating efficient operations and cost management.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.11, suggesting minimal leverage. The return on equity is impressive at 34.31%, indicating effective use of shareholder funds. The equity ratio stands at 72.11%, showcasing a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a healthy operating cash flow to net income ratio of 1.53, indicating strong cash generation relative to net income. Free cash flow growth is positive at 10.23%, and the free cash flow to net income ratio is 0.50, reflecting good cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	385.48B	350.02B	307.39B	282.84B	257.64B	182.53B
Gross Profit	228.09B	203.71B	174.06B	156.63B	146.70B	97.80B
EBITDA	171.74B	135.39B	97.97B	85.16B	103.52B	61.91B
Net Income	124.25B	100.12B	73.80B	59.97B	76.03B	40.27B
Balance Sheet
Total Assets	536.47B	450.26B	402.39B	365.26B	359.27B	319.62B
Cash, Cash Equivalents and Short-Term Investments	98.50B	95.66B	110.92B	113.76B	139.65B	136.69B
Total Debt	33.71B	25.46B	27.12B	29.68B	28.39B	26.77B
Total Liabilities	149.60B	125.17B	119.01B	109.12B	107.63B	97.07B
Stockholders Equity	386.87B	325.08B	283.38B	256.14B	251.63B	222.54B
Cash Flow
Free Cash Flow	73.55B	72.76B	69.50B	60.01B	67.01B	42.84B
Operating Cash Flow	151.42B	125.30B	101.75B	91.50B	91.65B	65.12B
Investing Cash Flow	-84.69B	-45.54B	-27.06B	-20.30B	-35.52B	-32.77B
Financing Cash Flow	-63.45B	-79.73B	-72.09B	-69.76B	-61.36B	-24.41B

Alphabet Class C Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 278.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOOG, the sentiment is Positive. The current price of 278.06 is above the 20-day moving average (MA) of 259.40, above the 50-day MA of 247.35, and above the 200-day MA of 194.60, indicating a bullish trend. The MACD of 10.32 indicates Negative momentum. The RSI at 69.72 is Neutral, neither overbought nor oversold. The STOCH value of 74.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GOOG.

Alphabet Class C Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOOG	86 Outperform	$3.35T	27.43	35.45%	0.29%	13.55%	34.26%
MSFT	82 Outperform	$3.84T	36.78	32.24%	0.65%	15.59%	15.89%
AAPL	80 Outperform	$3.99T	36.17	171.42%	0.38%	6.43%	22.85%
META	71 Outperform	$1.58T	27.72	32.64%	0.33%	21.27%	6.16%
BIDU	67 Neutral	$43.12B	11.48	10.33%	―	-1.32%	42.56%
ORCL	66 Neutral	$707.48B	57.45	71.15%	0.77%	9.67%	11.23%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Alphabet Class C Corporate Events

Provident Trust Co Reduces Stake in Alphabet Inc.

Alphabet Inc. Reports Strong Q3 2025 Earnings Growth

Alphabet Inc., a leading technology conglomerate, operates primarily in the internet services and products sector, with a focus on digital advertising, cloud computing, and artificial intelligence.

Robert Bender&Associates Reduces Stake in Alphabet Inc.

Suncoast Equity Management Reduces Stake in Alphabet Inc.

Penn Davis Mcfarland Inc Reduces Stake in Alphabet

Gobi Capital Llc Reduces Stake in Alphabet Inc.

GMT Capital Corp Reduces Stake in Alphabet Inc.

Tci Fund Management Ltd Reduces Stake in Alphabet Inc.

H&H International Boosts Stake in Alphabet Inc.

Intermede Investment Partners Ltd Reduces Stake in Alphabet

Appaloosa Management LP Reduces Stake in Alphabet Inc.

Clough Capital Partners Boosts Stake in Alphabet Inc.

Ardsley Advisory Partners Boosts Stake in Alphabet Inc.

Farallon Capital Boosts Stake in Alphabet Inc.

Eagle Capital Management Reduces Stake in Alphabet Inc.

Night Owl Capital Reduces Stake in Alphabet Inc.

Graham Capital Reduces Stake in Alphabet Inc. Class C

Woodline Partners LP Boosts Stake in Alphabet Inc.

Gilder Gagnon Howe Boosts Stake in Alphabet Inc.

Moore Capital Management LP Reduces Stake in Alphabet Inc.

Mairs & Power Inc Reduces Stake in Alphabet Inc.

Baupost Group LLC Boosts Stake in Alphabet Inc.

Brandes Investment Partners LP Reduces Stake in Alphabet

Gardner Russo & Gardner LLC Reduces Alphabet Inc. Holdings

Causeway Capital Boosts Stake in Alphabet Inc.

Gamco Investors Reduces Stake in Alphabet Inc.

Fisher Asset Management Reduces Stake in Alphabet Inc.

Vulcan Value Partners Reduces Stake in Alphabet Inc.

MIG Capital Reduces Stake in Alphabet Inc. Class C

Crake Asset Management Boosts Stake in Alphabet Inc.

Dodge & Cox Reduces Stake in Alphabet Inc. Class C

Sands Capital Management Reduces Stake in Alphabet Inc.

Egerton Capital Reduces Stake in Alphabet Inc.

PRIMECAP Management Co Reduces Stake in Alphabet Inc.

Davis Selected Advisers Boosts Stake in Alphabet Inc.

Yacktman Asset Management LP Reduces Stake in Alphabet Inc.

Suncoast Equity Management Reduces Stake in Alphabet Inc.

First Eagle Boosts Stake in Alphabet Inc.

Provident Trust Co Reduces Stake in Alphabet Inc.