Stock (Symbol) |
Alphabet (GOOGL) |
Stock Price |
$193 |
Sector |
| Technology |
Data is as of |
| July 25, 2025 |
Expected to Report |
| October 28 |
Company Description |
 Alphabet’s segments include Google Services, Google Cloud, and Other Bets.
The Google Services segment includes products and services such as ads, Android, Chrome, hardware, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes Google’s infrastructure and platform services, collaboration tools, and other services for enterprise customers. The Other Bets segment includes earlier stage technologies that are further afield from its core Google business, and it includes the sale of health technology and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform enables developers to build, test, and deploy applications on its infrastructure. Google Workspace collaboration tools include applications, such as Gmail, Docs, Drive, Calendar, Meet, and various others. The Company also has various hardware products. Source: Refinitiv |
Sharek’s Take |
 Alphabet (GOOGL) impressed investors with its latest earnings report as the company is doing more than just fighting off AI, its embracing it. Investors have been concerned that AI bots would remove the need for people to “Google things”. But instead, Google has developed its own AI tools like AI Overviews which gives a brief AI answer at the top of search results. More in-dept explanations are found using AI mode, which si more of a conversational chat bot with longer answers. Google Search made up 56% of Alphabet’s total revenue last quarter and grew revenue 12% compared to last year. And Cloud is doing great, with revenue up a sparkling 32% last qtr. Cloud had as many $1 million deals in the first half of 2025 as it did in all of 2024. AI and Cloud are doing so good that management increased Cap Ex for this year and next. YouTube also had a good quarter with 13% revenue growth.
Founded in 1998, Alphabet’s mission is to organize the world’s information and make it universally accessible. The company’s main division, Google Search, performs more than a trillion searches per year. Alphabet’s brands include Google, YouTube, Android, Google Chrome, Google Maps, Gmail, Pixel, Google Cloud, and Waymo. Here are Alphabet’s main divisions:
Alphabet is a conservative growth stock with a good growth rate. Prior to 2022, the company had profits up every year since its IPO outside of 2017 (which was only down as it switched its accounting practices to a more conservative stance). The stock has an Est. LTG of 17% a year, and a P/E of 20. I think the P/E should be 25. That implies a 28% upside by the end of 2025. Management recently issued its first quarterly dividend, of $0.20 per share. Management also buys back stock. In 2024, management has returned almost $70 billion to shareholders via stock buybacks and dividends. GOOGL is part of my Growth Portfolio, Conservative Growth Portfolio, and Aggressive Growth Portfolio. |
One Year Chart |
 This stock pushed higher after earnings were released.
With a P/E of 20 I think the stock is currently undervalued. My Fair Value is a P/E of 25. The stock is $193 this qtr and I feel its worth $247. The Estimated Long-Term Growth Rate is 17%. This figure was 18% last quarter. Profits grew 22% last qtr, that’s very good. |
Earnings Table |
 Last qtr, Alphabet delivered 22% profit growth and beat expectations of 14%. Revenue increased 14%, versus estimates of 10%. Operating margin increased to 32.4%, the same as in the year-ago period.
Annual Profit Estimates jumped this qtr. To keep up with growing demand for AI and cloud services, Alphabet increased its full-year capital spending plan (CapEx) to $85 billion, up from $75 billion. The company expects to spend even more in 2026 to have more servers and data centers. Qtrly Profit Estimates for the next 4 qtrs are 10%, 19%, 7%, and 12%. Analysts think revenue will grow 13% next quarter. Higher Cap Ex will increase depreciation costs next quarter, which will also include hiring more staff and expenses for the new Pixel launch in August. |
Fair Value |
 The stock is $193 this quarter and has a P/E of 20.
My Fair Value is a 25 P/E, that’s $247 a share. I believe this stock has 28% upside for 2025 and 36% upside for 2026. In 2017, GOOGL changed its accounting practices to more conservative accounting, and that’s why profits declined that year. |
Bottom Line |
 Alphabet (GOOGL) has been a steady grower this past decade, but 2020’s-2021’s move higher was a big one (116%) and the stock had to digest some gains. Now the stock is trending higher once again.
Google’s AI and Cloud are doing so well the company is spending more on Cap Ex to capitalize on the high demand. The fear of AI chipping away at Google’s business model has subsided, and the stock seems to be on its way towards $250. I really like this stock for the Conservative Portfolio. It’s got a great combo of growth and safety, and ranks 1st in the Power Rankings. In the Growth Portfolio, the stock drops from 4th to 15th in the Power Rankings as the stock’s up from $168 to $193 since last qtr and 2025 upside has fallen from 42% to 28%. GOOGLE moves from 5th to 11th in the Aggressive Growth Portfolio Power Rankings. |
Power Rankings |
Growth Stock Portfolio
15 of 34Aggressive Growth Portfolio 11 of 13Conservative Stock Portfolio 1 of 20 |
