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Alphabet Class C (GOOG)
NASDAQ:GOOG
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Alphabet Class C
(NASDAQ:GOOG)
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Rating:83Outperform
Price Target:
$269.00
▲(9.10% Upside)
Alphabet's overall stock score is driven by its strong financial performance and positive earnings call highlights, including significant revenue growth and AI-driven innovations. While the technical analysis indicates potential overbought conditions, the company's solid fundamentals and growth prospects support a favorable outlook.
Positive Factors
Revenue Growth
Strong revenue growth across major segments like Google Cloud and YouTube indicates robust demand and effective monetization strategies, supporting long-term business expansion.
AI Innovations
AI-driven innovations enhance product offerings and user engagement, positioning Alphabet as a leader in tech advancements and driving sustainable growth.
Balance Sheet Health
A strong balance sheet with low leverage and high equity provides financial stability and flexibility for future investments and growth opportunities.
Negative Factors
Legal Challenges
Ongoing legal challenges could lead to regulatory changes impacting business operations and market dominance, posing long-term risks to growth.
Regulatory Fines
Significant fines and regulatory scrutiny can impact financial performance and necessitate changes in business practices, affecting long-term profitability.
Supply Constraints
Supply constraints in Google Cloud could limit growth and delay capacity expansion, affecting the ability to meet increasing demand and capitalize on market opportunities.
Alphabet Class C (GOOG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.99T
Dividend Yield0.33%
Average Volume (3M)22.66M
Price to Earnings (P/E)26.9
Beta (1Y)1.06
Revenue Growth13.19%
EPS Growth34.51%
CountryUS
Employees185,719
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)2.31
Shares Outstanding5,430,000,000
10 Day Avg. Volume23,113,858
30 Day Avg. Volume22,656,186
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)7.17
Price to Sales (P/S)6.66
P/FCF Ratio32.05
Enterprise Value/Market Cap0.71
Enterprise Value/Revenue5.68
Enterprise Value/Gross Profit9.64
Enterprise Value/Ebitda13.38
Forecast
1Y Price Target
$242.92Price Target Upside-1.48% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering14
Alphabet Class C Business Overview & Revenue Model
Company DescriptionAlphabet 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 MoneyAlphabet 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 Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
Alphabet reported strong financial results with significant revenue growth across major segments like Google Cloud and YouTube, driven by AI innovations and product adoption. However, there were notable expenses related to legal settlements and increased depreciation costs. Google Cloud's supply constraints remain a concern but are being addressed with increased CapEx investments.Q2-2025 Updates
Positive Updates
Record Revenue Growth
Consolidated revenue of $96.4 billion, up 14% year-over-year, with double-digit revenue growth across Search, YouTube, and Google Cloud.
AI Innovations and Adoption
AI Mode and AI Overviews contributed to double-digit revenue growth in Search. AI Overviews have over 2 billion monthly users, and AI Mode has over 100 million monthly active users in the U.S. and India.
Google Cloud's Strong Performance
Google Cloud revenues increased by 32% to $13.6 billion, with significant demand for AI products. Google Cloud's operating income increased to $2.8 billion, with a margin increase to 20.7%.
YouTube's Continued Growth
YouTube advertising revenues increased by 13% to $9.8 billion, driven by direct response advertising. Shorts now average over 200 billion daily views.
Waymo's Expansion
Waymo expanded its service territories and launched in new cities, with the Waymo driver autonomously driving over 100 million miles on public roads.
Negative Updates
Legal and Other Expenses
Total operating expenses increased 20% to $26.1 billion, primarily driven by a $1.4 billion charge related to a settlement in principle of certain legal matters.
Supply Constraints in Google Cloud
Google Cloud remains in a tight demand supply environment, expected to continue into 2026, affecting the pace of capacity expansion.
Increased Depreciation Expense
Depreciation expenses increased by $1.3 billion year-over-year to $5 billion, reflecting a 35% growth rate.
Company Guidance
During the Alphabet Second Quarter 2025 Earnings Conference Call, the company provided detailed guidance on several key metrics. Alphabet reported consolidated revenue of $96.4 billion, marking a 14% increase year-over-year. Google Services revenues rose by 12% to $82.5 billion, driven by a 12% increase in Search and a 13% growth in YouTube advertising revenues. Google Cloud also saw impressive growth, with revenues increasing by 32% to $13.6 billion, contributing to a 20.7% operating margin. The company highlighted the strong demand for its AI products, noting the annual revenue run rate for Google Cloud exceeded $50 billion. Furthermore, Alphabet plans to increase its CapEx investment to approximately $85 billion in 2025, up from the previous estimate of $75 billion, primarily to meet the growing demand for cloud services. The company also mentioned the successful launch of AI features such as AI Mode and Gemini, which contributed to significant increases in user engagement and monetization potential.Alphabet Class C Financial Statement Overview
Summary
Alphabet demonstrates strong financial performance with robust revenue growth, high profitability, and a solid balance sheet. The income statement shows a TTM gross profit margin of 58.95% and a net profit margin of 31.11%. The balance sheet reflects a low debt-to-equity ratio of 0.10 and a high return on equity of 31.85%. Cash flow is healthy with a free cash flow growth of 9.35% TTM.Income Statement
Alphabet's income statement shows robust financial health with high profitability and significant growth. The TTM (Trailing-Twelve-Months) gross profit margin is 58.95%, indicating efficient cost management. A strong net profit margin of 31.11% highlights excellent profitability. Revenue growth is commendable, with a 6.1% increase from the previous year. EBIT and EBITDA margins are solid at 32.67% and 40.33% respectively, showcasing strong operational performance.92
Very Positive
Balance Sheet
The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.10, suggesting minimal leverage risks. The return on equity (ROE) is impressive at 31.85%, indicating effective use of equity capital. The equity ratio is high at 72.28%, pointing to a strong capital structure with substantial shareholder's equity relative to total assets.88
Very Positive
Cash Flow
Alphabet's cash flow statement demonstrates strong cash generation and prudent capital deployment. The free cash flow in TTM grew by 9.35% compared to the previous period. The operating cash flow to net income ratio is 1.16, indicating healthy cash flow from operations relative to net income. The free cash flow to net income ratio is 0.58, showcasing good free cash flow relative to net income, supporting future growth and investment.85
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 371.40B | 350.02B | 307.39B | 282.84B | 257.64B | 182.53B |
| Gross Profit | 218.91B | 203.71B | 174.06B | 156.63B | 146.70B | 97.80B |
| EBITDA | 157.75B | 135.39B | 97.97B | 85.16B | 103.52B | 61.91B |
| Net Income | 115.57B | 100.12B | 73.80B | 59.97B | 76.03B | 40.27B |
Balance Sheet | ||||||
| Total Assets | 502.05B | 450.26B | 402.39B | 365.26B | 359.27B | 319.62B |
| Cash, Cash Equivalents and Short-Term Investments | 95.15B | 95.66B | 110.92B | 113.76B | 139.65B | 136.69B |
| Total Debt | 41.67B | 25.46B | 27.12B | 29.68B | 28.39B | 26.77B |
| Total Liabilities | 139.14B | 125.17B | 119.01B | 109.12B | 107.63B | 97.07B |
| Stockholders Equity | 362.92B | 325.08B | 283.38B | 256.14B | 251.63B | 222.54B |
Cash Flow | ||||||
| Free Cash Flow | 66.73B | 72.76B | 69.50B | 60.01B | 67.01B | 42.84B |
| Operating Cash Flow | 133.71B | 125.30B | 101.75B | 91.50B | 91.65B | 65.12B |
| Investing Cash Flow | -74.93B | -45.54B | -27.06B | -20.30B | -35.52B | -32.77B |
| Financing Cash Flow | -65.16B | -79.73B | -72.09B | -69.76B | -61.36B | -24.41B |
Alphabet Class C Technical Analysis
Positive
246.57
Price Trends
214.67
Positive
193.24
Positive
185.69
Positive
Market Momentum
11.42
Positive
68.41
Neutral
54.09
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 246.57 is above the 20-day moving average (MA) of 239.58, above the 50-day MA of 214.67, and above the 200-day MA of 185.69, indicating a bullish trend. The MACD of 11.42 indicates Positive momentum. The RSI at 68.41 is Neutral, neither overbought nor oversold. The STOCH value of 54.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GOOG.
Alphabet Class C Risk Analysis
Alphabet Class C disclosed 29 risk factors in its most recent earnings report. Alphabet Class C reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Alphabet Class C Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
87 Outperform | 1.91T | 27.55 | 36.66% | 0.28% | 19.38% | 40.62% | |
83 Outperform | $2.99T | 26.88 | 34.83% | 0.33% | 13.19% | 34.51% | |
83 Outperform | 3.79T | 37.40 | 29.65% | 0.65% | 14.93% | 15.50% | |
80 Outperform | 3.74T | 38.36 | 150.81% | 0.40% | 5.97% | 0.15% | |
75 Outperform | 45.44B | 12.43 | 9.01% | ― | -1.32% | 42.56% | |
71 Outperform | 876.56B | 71.41 | 51.51% | 0.62% | 9.67% | 11.23% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
Performance Comparison
GOOG
Alphabet Class C
246.57
82.00
49.83%
AAPL
Apple
256.87
30.14
13.29%
BIDU
Baidu
135.40
30.23
28.74%
META
Meta Platforms
748.91
183.33
32.41%
MSFT
Microsoft
507.03
82.20
19.35%
ORCL
Oracle
291.33
124.34
74.46%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.