Alphabet Class A (GOOGL) AI Stock Analysis

• Market Cap: $3.97T
• Dividend Yield: 0.26%
• Average Volume (3M): 28.82M
• Price to Earnings (P/E): 32.4
• Beta (1Y): 1.06
• 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: 5,818,000,000
• 10 Day Avg. Volume: 22,469,700
• 30 Day Avg. Volume: 28,821,500
• 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: 0.73
• Enterprise Value/Revenue: 7.55
• Enterprise Value/Gross Profit: 12.75
• Enterprise Value/Ebitda: 16.94
• 1Y Price Target: $340.45
• Price Target Upside: 2.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 34
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 85 Outperform
• Price Target: $369.00 ▲(11.19% Upside)

Alphabet's strong financial performance and positive earnings call are the most significant factors driving the stock score. Technical analysis supports a bullish outlook, though valuation concerns slightly temper the overall score. Strategic investments in AI and cloud services position Alphabet well for future growth, despite some cost-related challenges.

Positive Factors

AI and Cloud Growth

Alphabet's strategic investments in AI and cloud infrastructure are enhancing its product offerings and driving revenue growth, positioning the company well for future expansion in these high-demand sectors.

Strong Financial Health

Alphabet's low leverage and strong equity base provide financial stability, allowing for strategic investments and resilience against economic fluctuations, supporting long-term growth.

Partnerships and Innovation

Collaborations with industry leaders like NextEra Energy enhance Alphabet's technological capabilities and infrastructure, promoting innovation and expansion in the energy and technology sectors.

Negative Factors

European Commission Antitrust Investigation

The investigation could lead to regulatory challenges and potential fines, impacting Alphabet's operations and competitive positioning in the European market.

Increased Operating Costs

Rising operating costs may pressure profit margins, potentially affecting Alphabet's ability to maintain its high profitability levels and necessitating cost management strategies.

Network Advertising Revenue Decline

A decline in network advertising revenue could signal challenges in maintaining growth in a key revenue segment, impacting overall revenue diversification and growth strategies.

Alphabet Class A Business Overview & Revenue Model

Company Description

Alphabet Inc. provides 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 offers products and services, including ads, Android, Chrome, hardware, 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 store; and Fitbit wearable devices, Google Nest home products, Pixel phones, and other devices, as well as in the provision of YouTube non-advertising services. The Google Cloud segment offers infrastructure, platform, and other services; Google Workspace that include cloud-based collaboration tools for enterprises, such as Gmail, Docs, Drive, Calendar, and Meet; and other services for enterprise customers. The Other Bets segment sells health technology and internet services. The company was founded in 1998 and is headquartered in Mountain View, California.

How the Company Makes Money

Alphabet generates the majority of its revenue through advertising, primarily from its Google Ads platform, where businesses pay to display ads on Google search results and across its extensive network of websites. In addition to advertising, Alphabet earns revenue from its Google Cloud services, which provide businesses with cloud storage, computing power, and data analytics solutions. Other significant revenue streams include sales from hardware products like Google Pixel phones, Nest smart home devices, and subscription services such as YouTube Premium. Furthermore, Alphabet has formed partnerships with various companies and developers to expand its ecosystem, contributing to its earnings through collaborations and revenue-sharing agreements.

Alphabet Class A Financial Statement Overview

Summary

Alphabet demonstrates strong financial health with robust profitability, low leverage, and high returns on equity. The income statement reflects solid revenue growth and efficient operations, while the balance sheet shows financial stability. Cash flow generation is healthy, though there is room for improvement in free cash flow conversion.

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 maintained a healthy revenue growth rate of 3.79% in the TTM, indicating consistent growth. EBIT and EBITDA margins are robust at 37.71% and 42.47% respectively, reflecting efficient operations and cost management.

Balance Sheet

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

Cash Flow

Cash flow metrics are strong with a free cash flow growth rate of 10.23% in the TTM, indicating healthy cash generation. The operating cash flow to net income ratio is 1.53, suggesting efficient cash conversion. However, the free cash flow to net income ratio of 0.50 indicates room for improvement in translating profits into free cash flow.

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 A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 331.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOOGL, the sentiment is Positive. The current price of 331.86 is above the 20-day moving average (MA) of 313.82, above the 50-day MA of 305.05, and above the 200-day MA of 222.57, indicating a bullish trend. The MACD of 6.25 indicates Negative momentum. The RSI at 71.21 is Negative, neither overbought nor oversold. The STOCH value of 85.12 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GOOGL.

Alphabet Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GOOGL	85 Outperform	$3.97T	32.41	35.45%	0.26%	13.55%	34.26%
MSFT	79 Outperform	$3.56T	34.10	32.24%	0.71%	15.59%	15.89%
META	76 Outperform	$1.65T	28.86	32.64%	0.32%	21.27%	6.16%
AAPL	72 Outperform	$3.83T	34.74	171.42%	0.38%	6.43%	22.85%
AMZN	71 Outperform	$2.64T	34.82	24.33%	―	11.48%	50.70%
BIDU	68 Neutral	$48.45B	48.63	3.31%	―	-2.70%	-56.75%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Alphabet Class A Corporate Events

Alphabet Closes $17.5B and €6.5B Senior Notes Offering

On November 6, 2025, Alphabet Inc. successfully closed its concurrent underwritten public offerings of $17.5 billion in U.S. dollar-denominated senior notes and €6.5 billion in euro-denominated senior notes. This strategic financial move is expected to bolster Alphabet’s financial position and provide capital for future investments, potentially impacting its market standing and stakeholder interests.

The most recent analyst rating on (GOOGL) stock is a Buy with a $330.00 price target. To see the full list of analyst forecasts on Alphabet Class A stock, see the GOOGL Stock Forecast page.