Alphabet Class C (GOOG)
NASDAQ:GOOG
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Alphabet Class C
(NASDAQ:GOOG)
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Rating:81Outperform
Price Target:
$344.00
▲(7.77% Upside)
Action:ReiteratedDate:02/05/26
High score is driven primarily by strong financial performance (scaled profitability and earnings power) and supportive technical trend. This is tempered by premium valuation and earnings-call risks tied to a very large 2026 CapEx ramp and faster depreciation that may pressure near-term cash flow despite strong AI and Cloud momentum.
Positive Factors
Scale & Profitability
Alphabet's massive scale (annual revenue >$400B) and sustained profit growth create durable cash generation and pricing power across ad and platform businesses. Large margins and diversified high-margin services provide structural earnings resilience and the ability to reinvest in AI and cloud over multi-year horizons.
Negative Factors
Massive 2026 CapEx ramp
A multi-year CapEx surge to ~$175–185B materially raises execution and financing risk: it will increase depreciation and cash outflows, strain supply chains for data-center buildouts, and requires disciplined rollout to avoid underutilized capacity or margin erosion as the company absorbs heavy near-term investment.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Profitability
Alphabet's massive scale (annual revenue >$400B) and sustained profit growth create durable cash generation and pricing power across ad and platform businesses. Large margins and diversified high-margin services provide structural earnings resilience and the ability to reinvest in AI and cloud over multi-year horizons.
Read all positive factors
Alphabet Class C (GOOG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.88T
Dividend Yield0.26%
Average Volume (3M)18.92M
Price to Earnings (P/E)28.7
Beta (1Y)1.13
Revenue Growth13.55%
EPS Growth34.26%
CountryUS
Employees185,719
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)2.82
Shares Outstanding5,438,000,000
10 Day Avg. Volume16,695,044
30 Day Avg. Volume18,922,396
Financial Highlights & Ratios
PEG Ratio0.84
Price to Book (P/B)9.13
Price to Sales (P/S)9.41
P/FCF Ratio51.76
Enterprise Value/Market Cap1.05
Enterprise Value/Revenue10.10
Enterprise Value/Gross Profit16.93
Enterprise Value/Ebitda22.52
Forecast
1Y Price Target
$385.90Price Target Upside20.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)11.49
Revenue Forecast (FY)$470.73B
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...
How the Company Makes Money
Alphabet generates the majority of its revenue from advertising sold by Google. The core advertising model centers on (1) Google Search and other Google-owned surfaces (e.g., search results and other Google properties) where advertisers pay to dis...
Alphabet Class C Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call emphasized strong, broad-based growth driven by AI investments: record annual revenue (> $400B), accelerated Search (17% YoY), exceptional Google Cloud growth (48% YoY) with backlog up 55% QoQ, rapid monetization of generative AI products (~400% YoY growth), and large-scale adoption of Gemini (750M MAUs, >8M enterprise seats). Profitability and cash flow are robust (net income +30%, record operating cash flow). Notable challenges include a $2.1B Waymo-related charge, materially higher operating expenses and depreciation, supply constraints for AI compute, and a massive planned CapEx increase ($175–$185B for 2026) that will pressure the P&L and requires execution. Early-stage monetization of new AI search experiences and some softness in specific ad channels (network ads down 2%) are additional risks. Overall, positives around AI-driven revenue and adoption materially outweigh the near-term expense and capacity challenges.Positive Updates
Record Annual Revenue Surpasses $400B
Alphabet reported full-year 2025 consolidated revenues of $403.0 billion, up 15% year over year, marking the first time annual revenues exceeded $400 billion.
Negative Updates
Waymo-Related Charge and Other Bets Losses
Alphabet recorded a $2.1 billion stock-based compensation charge tied to an increase in Waymo's valuation, contributing to Other Bets operating loss of $3.6 billion and negatively impacting operating income and margin for the quarter.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Revenue Surpasses $400B
Alphabet reported full-year 2025 consolidated revenues of $403.0 billion, up 15% year over year, marking the first time annual revenues exceeded $400 billion.
Read all positive updates
Company Guidance
Alphabet's forward guidance centered on a heavy investment cadence: CapEx is expected to be $175–$185 billion in 2026 (Q4 2025 CapEx was $27.9B; FY2025 was $91.4B), with spending ramping over the year and an FX tailwind to Q1 revenues at current spot rates (but subject to volatility). Management warned depreciation will accelerate in Q1 and meaningfully for the full year—after depreciation rose from $15.3B in 2024 to $21.1B in 2025 (≈+38% or +$5.8B)—driven by higher technical infrastructure spend; roughly 60% of CapEx is for machines/servers and ~40% for data centers/networking (a similar split anticipated in 2026). They expect just over half of ML compute to serve Google Cloud, highlighted continued hiring in AI and Cloud, and noted supply, component pricing, and payment timing could cause variability in reported CapEx.Alphabet Class C Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
80
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 402.96B | 350.02B | 307.39B | 282.84B | 257.64B |
| Gross Profit | 240.43B | 203.71B | 174.06B | 156.63B | 146.70B |
| EBITDA | 179.96B | 135.39B | 97.97B | 85.16B | 103.52B |
| Net Income | 132.17B | 100.12B | 73.80B | 59.97B | 76.03B |
Balance Sheet | |||||
| Total Assets | 595.28B | 450.26B | 402.39B | 365.26B | 359.27B |
| Cash, Cash Equivalents and Short-Term Investments | 126.84B | 95.66B | 110.92B | 113.76B | 139.65B |
| Total Debt | 72.03B | 25.46B | 27.12B | 29.68B | 28.39B |
| Total Liabilities | 180.02B | 125.17B | 119.01B | 109.12B | 107.63B |
| Stockholders Equity | 415.26B | 325.08B | 283.38B | 256.14B | 251.63B |
Cash Flow | |||||
| Free Cash Flow | 73.27B | 72.76B | 69.50B | 60.01B | 67.01B |
| Operating Cash Flow | 164.71B | 125.30B | 101.75B | 91.50B | 91.65B |
| Investing Cash Flow | -120.29B | -45.54B | -27.06B | -20.30B | -35.52B |
| Financing Cash Flow | -37.39B | -79.73B | -72.09B | -69.76B | -61.36B |
Alphabet Class C Technical Analysis
Positive
319.21
Price Trends
307.21
Positive
312.80
Positive
270.17
Positive
Market Momentum
4.04
Negative
70.19
Negative
97.10
Negative
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 319.21 is above the 20-day moving average (MA) of 300.01, above the 50-day MA of 307.21, and above the 200-day MA of 270.17, indicating a bullish trend. The MACD of 4.04 indicates Negative momentum. The RSI at 70.19 is Negative, neither overbought nor oversold. The STOCH value of 97.10 is Negative, 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 28 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
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $3.88T | 28.69 | 35.00% | 0.26% | 13.55% | 34.26% | |
80 Outperform | $3.81T | 23.95 | 159.94% | 0.41% | 10.07% | 25.58% | |
74 Outperform | $1.61T | 18.27 | 30.56% | 0.32% | 22.17% | -2.66% | |
74 Outperform | $2.75T | 23.36 | 33.61% | 0.71% | 16.67% | 28.60% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
57 Neutral | $447.57B | 27.89 | 57.35% | 1.00% | 11.08% | 29.56% | |
46 Neutral | $36.16B | 62.07 | 1.73% | ― | -2.70% | -56.75% |
* Communication Services Sector Average
GOOG
Alphabet Class C
330.58
172.45
109.05%
AAPL
Apple
258.83
57.57
28.60%
BIDU
Baidu
118.23
33.68
39.83%
META
Meta Platforms
662.49
142.59
27.43%
MSFT
Microsoft
393.11
9.44
2.46%
ORCL
Oracle
163.00
30.39
22.92%
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.