Alphabet Class A (GOOGL) AI Stock Analysis

• Market Cap: $3.40T
• Dividend Yield: 0.29%
• Average Volume (3M): 31.57M
• Price to Earnings (P/E): 27.7
• 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: 36,364,459
• 30 Day Avg. Volume: 31,568,242
• 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: 0.86
• Enterprise Value/Revenue: 7.55
• Enterprise Value/Gross Profit: 12.75
• Enterprise Value/Ebitda: 16.94
• 1Y Price Target: $306.06
• Price Target Upside: 8.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 37

• Rating: 80 Outperform
• Price Target: $316.00 ▲(12.38% Upside)

Alphabet's strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The company's strategic investments in AI and cloud services are enhancing growth prospects. However, the high valuation and increased costs pose some risks.

Positive Factors

AI Innovations and Adoption

The successful launch and adoption of AI innovations enhance Alphabet's competitive edge, driving user engagement and opening new revenue streams.

Google Cloud Growth

Strong growth in Google Cloud underscores Alphabet's successful diversification beyond advertising, positioning it well in the growing cloud market.

Record Free Cash Flow

Robust free cash flow generation provides Alphabet with financial flexibility to invest in growth opportunities and weather economic uncertainties.

Negative Factors

Increased Operating Expenses

Rising operating expenses, including significant legal charges, could pressure margins and impact profitability if not managed effectively.

Network Advertising Revenue Decline

A decline in network advertising revenue indicates potential challenges in maintaining growth in a key revenue segment, affecting overall revenue stability.

Supply Constraints in Cloud

Ongoing supply constraints in Google Cloud could limit growth potential, impacting Alphabet's ability to capitalize on strong demand in the cloud sector.

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 revenue primarily through its advertising business, which accounts for the vast majority of its earnings. Google Ads, which includes search ads and display ads across various platforms, allows businesses to promote their products and services to targeted audiences, driving significant ad spend. Additionally, YouTube generates revenue through ad placements and subscription services like YouTube Premium. Another growing revenue stream comes from Google Cloud, which offers cloud computing services to businesses and organizations, contributing to the company's diversification beyond advertising. Alphabet also earns money from hardware sales, including devices like Google Pixel smartphones and Nest smart home products. Partnerships with other companies, such as collaborations with device manufacturers and advertisers, further enhance its revenue potential.

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: 281.19
• 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 281.19 is above the 20-day moving average (MA) of 255.50, above the 50-day MA of 243.82, and above the 200-day MA of 192.46, indicating a bullish trend. The MACD of 9.62 indicates Negative momentum. The RSI at 77.26 is Negative, neither overbought nor oversold. The STOCH value of 84.77 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
MSFT	―	$3.85T	36.84	32.24%	0.64%	15.59%	15.89%
GOOGL	―	$3.40T	27.74	35.45%	0.29%	13.55%	34.26%
AAPL	―	$4.01T	36.24	171.42%	0.38%	6.43%	22.85%
AMZN	―	$2.60T	34.52	24.33%	―	11.48%	50.70%
META	―	$1.63T	28.65	32.64%	0.32%	21.27%	6.16%
BIDU	―	$41.60B	11.10	10.33%	―	-1.32%	42.56%
Sector *	―	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

Alphabet Class A Corporate Events

Alphabet Inc. Reports Strong Q3 2025 Growth

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

Manning & Napier Reduces Stake in Alphabet Inc.

Suncoast Equity Management Boosts Stake in Alphabet Inc.

Alphabet Fined €2.95 Billion by European Commission

On September 5, 2025, the European Commission announced that Google LLC, a subsidiary of Alphabet Inc., violated European competition laws through self-preferencing practices in its advertising technology business. The EC imposed a €2.95 billion fine on Google and directed the company to stop these practices, though Google plans to appeal the decision.

The most recent analyst rating on (GOOGL) stock is a Buy with a $280.00 price target. To see the full list of analyst forecasts on Alphabet Class A stock, see the GOOGL Stock Forecast page.

Alphabet Faces Antitrust Remedies Decision by Judge

On September 2, 2025, Judge Amit P. Mehta issued a remedies decision in the U.S. Department of Justice’s antitrust case against Google LLC, a subsidiary of Alphabet Inc., concerning online search practices. The decision, following an August 5, 2024 liability ruling, imposes restrictions on Google’s service distribution and mandates data sharing and syndication services with certain competitors, potentially impacting Google’s market operations and competitive dynamics.

The most recent analyst rating on (GOOGL) stock is a Buy with a $265.00 price target. To see the full list of analyst forecasts on Alphabet Class A stock, see the GOOGL Stock Forecast page.

Hotchkis & Wiley Reduces Stake in Alphabet Inc.

Wedgewood Partners Inc Reduces Stake in Alphabet Inc.

GMT Capital Corp Reduces Stake in Alphabet Inc.

Tci Fund Management Ltd Reduces Stake in Alphabet Inc.

Pershing Square Boosts Stake in Alphabet Inc.

Maverick Capital Ltd Boosts Stake in Alphabet Inc.

Soros Fund Management LLC Reduces Stake in Alphabet Inc.

Chilton Investment Co LLC Reduces Stake in Alphabet Inc.

Corvex Management LP Reduces Stake in Alphabet Inc.

Eagle Capital Management Reduces Stake in Alphabet Inc.

Graham Capital Management Reduces Stake in Alphabet Inc.

Altarock Partners Llc Reduces Stake in Alphabet Inc.

Kensico Capital Boosts Stake in Alphabet Inc.

Atreides Management, LP Boosts Stake in Alphabet Inc.

Woodline Partners LP Increases Stake in Alphabet Inc.

Blackstone Inc. Boosts Stake in Alphabet Inc. Class A

Gilder Gagnon Howe Reduces Stake in Alphabet Inc.

Moore Capital Management LP Reduces Stake in Alphabet Inc.

Tiger Global Boosts Stake in Alphabet Inc.

Brandes Investment Partners LP Boosts Stake in Alphabet

Manning & Napier Advisors LLC Reduces Stake in Alphabet

Longview Partners Reduces Stake in Alphabet Inc.

Gamco Investors Boosts Stake in Alphabet Inc.

Columbus Hill Capital Reduces Stake in Alphabet Inc.

Fisher Asset Management Reduces Stake in Alphabet Inc.

SCS Capital Management LLC Boosts Stake in Alphabet Inc.

Dodge & Cox Reduces Stake in Alphabet Inc.

Sands Capital Management LLC Reduces Stake in Alphabet Inc.

Bridgewater Associates Boosts Stake in Alphabet Inc.

Bowie Capital Management Boosts Stake in Alphabet Inc.

PRIMECAP Management Co Increases Stake in Alphabet Inc.

Davis Selected Advisers Reduces Stake in Alphabet Inc.

Generation Investment Management LLP Reduces Stake in Alphabet Inc.

Suncoast Equity Management Boosts Stake in Alphabet Inc.

First Eagle Investment Management Reduces Stake in Alphabet

Antipodes Partners Ltd Reduces Stake in Alphabet Inc.

Provident Trust Co Reduces Stake in Alphabet Inc.

Saybrook Capital /Nc Reduces Stake in Alphabet Inc.

First Pacific Advisors LLC Reduces Stake in Alphabet Inc.

Tweedy Browne CO LLC Reduces Stake in Alphabet Inc.

Morningstar Investment Boosts Stake in Alphabet Inc.