Alphabet Class A (GOOGL)
NASDAQ:GOOGL
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Alphabet Class A
(NASDAQ:GOOGL)
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Rating:71Outperform
Price Target:
$332.00
▲(18.18% Upside)
Action:ReiteratedDate:03/07/26
The score is driven primarily by strong financial performance (profitability, scale, and balance-sheet strength) and a generally positive earnings outlook tied to accelerating AI/Cloud adoption. These are tempered by a clearly bearish near-term technical picture and a premium valuation with minimal dividend support, plus elevated 2026 investment intensity that could pressure margins and free cash flow.
Positive Factors
Scale & ad dominance
A >$400B revenue base reflects a deeply entrenched advertising and services ecosystem across Search, YouTube, Play and partner networks. That scale produces durable network effects, high ad demand and predictable cash inflows to fund product R&D and long-term AI/cloud investments.
Negative Factors
CapEx ramp and capital intensity
A near-doubling of planned CapEx sharply raises capital intensity, accelerates depreciation and pressures reported margins and free cash flow for multiple years. Execution risk is heightened by supply, land and power constraints, requiring sustained efficiency gains to protect returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & ad dominance
A >$400B revenue base reflects a deeply entrenched advertising and services ecosystem across Search, YouTube, Play and partner networks. That scale produces durable network effects, high ad demand and predictable cash inflows to fund product R&D and long-term AI/cloud investments.
Read all positive factors
Alphabet Class A (GOOGL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.40T
Dividend Yield0.26%
Average Volume (3M)30.58M
Price to Earnings (P/E)28.7
Beta (1Y)1.06
Revenue Growth15.22%
EPS Growth34.19%
CountryUS
Employees185,719
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)2.82
Shares Outstanding5,822,000,000
10 Day Avg. Volume27,852,341
30 Day Avg. Volume30,577,646
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 Cap0.99
Enterprise Value/Revenue8.34
Enterprise Value/Gross Profit13.98
Enterprise Value/Ebitda18.59
Forecast
1Y Price Target
$376.57Price Target Upside34.05% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering32
EPS Forecast (FY)11.47
Revenue Forecast (FY)$470.50B
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 Servic...
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, Alph...
Alphabet Class A Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyAlphabet Class A Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 2026
Earnings Call Sentiment Positive
The call portrayed a strongly positive growth trajectory driven by AI: record revenues, rapid Cloud acceleration, broad Gemini adoption, major efficiency gains, and robust cash generation. These positives were balanced by material near-term costs — large CapEx guidance, rising depreciation, higher operating expenses, and a one-time Waymo charge — and ongoing supply/capacity constraints. Overall, the business momentum and monetization wins from AI appear to outweigh the investment-related headwinds, but investors should monitor capital intensity and expense growth as 2026 investments ramp.Positive Updates
Record Annual Revenue
Alphabet annual consolidated revenues exceeded $400 billion for the first time, reaching $403.0 billion for fiscal 2025, up 15% year over year on a reported and constant currency basis.
Negative Updates
Rising Costs and Operating Expenses
Total operating expenses increased 29% to $32.1 billion in Q4. R&D expense rose 42% (driven by compensation and depreciation), and total cost of revenue increased 13% to $45.8 billion.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Annual Revenue
Alphabet annual consolidated revenues exceeded $400 billion for the first time, reaching $403.0 billion for fiscal 2025, up 15% year over year on a reported and constant currency basis.
Read all positive updates
Company Guidance
Alphabet guided to a sizable investment ramp in 2026, forecasting capital expenditures of $175–$185 billion (versus $91.4 billion for full‑year 2025 and $27.9 billion in Q4), and said investments will ramp over the course of the year to add AI compute capacity; at current spot rates they expect an FX tailwind to Q1 revenues (but warned FX volatility could change that). Management expects depreciation—which rose ~38% from $15.3 billion in 2024 to $21.1 billion in 2025—to accelerate in Q1 and increase meaningfully for the full year, will keep hiring in AI and Cloud, expects just over half of ML compute in 2026 to serve Cloud, and cautioned that supply availability, component pricing, and payment timing can create variability in reported CapEx.Alphabet Class A Financial Statement Overview
Summary
Income Statement
88
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
78
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 A Technical Analysis
Negative
280.92
Price Trends
314.67
Negative
310.30
Negative
261.95
Positive
Market Momentum
-5.76
Positive
28.34
Positive
4.97
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GOOGL, the sentiment is Negative. The current price of 280.92 is below the 20-day moving average (MA) of 302.38, below the 50-day MA of 314.67, and above the 200-day MA of 261.95, indicating a neutral trend. The MACD of -5.76 indicates Positive momentum. The RSI at 28.34 is Positive, neither overbought nor oversold. The STOCH value of 4.97 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GOOGL.
Alphabet Class A Risk Analysis
Alphabet Class A disclosed 28 risk factors in its most recent earnings report. Alphabet Class A 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 A Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $3.71T | 23.95 | 159.94% | 0.41% | 10.07% | 25.58% | |
74 Outperform | $1.39T | 27.52 | 30.56% | 0.32% | 22.17% | -2.66% | |
74 Outperform | $2.72T | 23.36 | 33.61% | 0.71% | 16.67% | 28.60% | |
71 Outperform | $3.40T | 28.69 | 35.00% | 0.26% | 15.22% | 34.19% | |
69 Neutral | $2.23T | 31.67 | 21.87% | ― | 11.48% | 50.70% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
46 Neutral | $36.86B | 62.07 | 1.73% | ― | -2.70% | -56.75% |
* Communication Services Sector Average
GOOGL
Alphabet Class A
280.92
127.12
82.66%
AMZN
Amazon
207.54
14.82
7.69%
AAPL
Apple
252.89
35.94
16.56%
BIDU
Baidu
109.91
16.54
17.71%
META
Meta Platforms
547.54
-27.41
-4.77%
MSFT
Microsoft
365.97
-10.81
-2.87%
Alphabet Class A Corporate Events
Business Operations and StrategyExecutive/Board Changes
Alphabet Grants New Triennial Equity Package to CEO
Positive
Mar 6, 2026
On March 4, 2026, Alphabet’s board-level compensation committee approved a new triennial equity package for CEO Sundar Pichai, keeping his $2 million annual salary unchanged and continuing to exclude any annual bonus. The award preserves the...
Business Operations and StrategyPrivate Placements and Financing
Alphabet Raises Multi-Currency Long-Term Funding via Debt Offering
Positive
Feb 13, 2026
On February 13, 2026, Alphabet Inc. closed concurrent underwritten public offerings of $20 billion in U.S. dollar-denominated senior notes and £5.5 billion in Sterling-denominated senior notes under its existing shelf registration. The multi-...
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.