Alphabet (GOOGL)
Market Price (4/23/2026): $338.35 | Market Cap: $4.1 TrilSector: Communication Services | Industry: Interactive Media & Services
Alphabet (GOOGL)
Market Price (4/23/2026): $338.35Market Cap: $4.1 TrilSector: Communication ServicesIndustry: Interactive Media & Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 15% Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 32% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 41%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 18%, CFO LTM is 165 Bil, FCF LTM is 73 Bil Stock buyback supportStock Buyback 3Y Total is 169 Bil Low stock price volatilityVol 12M is 29% Megatrend and thematic driversMegatrends include Artificial Intelligence, Autonomous Technologies, Cybersecurity, Cloud Computing, Show more. | Trading close to highsDist 52W High is -1.2%, Dist 3Y High is -1.2% | Expensive valuation multiplesP/SPrice/Sales ratio is 10x Stock price has recently run up significantly12M Rtn12 month market price return is 125% Key risksGOOGL key risks include [1] the structural threat of generative AI disrupting its core search business and [2] intensifying global antitrust investigations that could force divestitures or major changes to its business practices. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 15% |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 32% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 41%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 18%, CFO LTM is 165 Bil, FCF LTM is 73 Bil |
| Stock buyback supportStock Buyback 3Y Total is 169 Bil |
| Low stock price volatilityVol 12M is 29% |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, Autonomous Technologies, Cybersecurity, Cloud Computing, Show more. |
| Trading close to highsDist 52W High is -1.2%, Dist 3Y High is -1.2% |
| Expensive valuation multiplesP/SPrice/Sales ratio is 10x |
| Stock price has recently run up significantly12M Rtn12 month market price return is 125% |
| Key risksGOOGL key risks include [1] the structural threat of generative AI disrupting its core search business and [2] intensifying global antitrust investigations that could force divestitures or major changes to its business practices. |
Qualitative Assessment
AI Analysis | Feedback
1. Continued robust growth in Google Cloud (GCP) driven by strong demand for AI services, with Q1 2026 revenue growth projected to exceed 50%. Google Cloud's substantial backlog of $240 billion, up 55% in a single quarter, underscores sustained future revenue generation.
2. Resilient performance and AI integration within core advertising businesses, including Search and YouTube. Analysts project Search revenue growth of 16.5% year-over-year for Q1 2026, while AI Mode queries within Search have doubled, indicating successful AI integration and sustained user engagement.
Show more
Stock Movement Drivers
Fundamental Drivers
The 8.5% change in GOOGL stock from 12/31/2025 to 4/22/2026 was primarily driven by a 4.5% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 12312025 | 4222026 | Change |
|---|---|---|---|
| Stock Price ($) | 312.78 | 339.32 | 8.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 385,477 | 402,837 | 4.5% |
| Net Income Margin (%) | 32.2% | 32.8% | 1.8% |
| P/E Multiple | 30.4 | 31.0 | 1.9% |
| Shares Outstanding (Mil) | 12,086 | 12,074 | 0.1% |
| Cumulative Contribution | 8.5% |
Market Drivers
12/31/2025 to 4/22/2026| Return | Correlation | |
|---|---|---|
| GOOGL | 8.5% | |
| Market (SPY) | -5.4% | 48.3% |
| Sector (XLC) | 0.1% | 67.2% |
Fundamental Drivers
The 39.8% change in GOOGL stock from 9/30/2025 to 4/22/2026 was primarily driven by a 21.7% change in the company's P/E Multiple.| (LTM values as of) | 9302025 | 4222026 | Change |
|---|---|---|---|
| Stock Price ($) | 242.77 | 339.32 | 39.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 371,399 | 402,837 | 8.5% |
| Net Income Margin (%) | 31.1% | 32.8% | 5.4% |
| P/E Multiple | 25.5 | 31.0 | 21.7% |
| Shares Outstanding (Mil) | 12,122 | 12,074 | 0.4% |
| Cumulative Contribution | 39.8% |
Market Drivers
9/30/2025 to 4/22/2026| Return | Correlation | |
|---|---|---|
| GOOGL | 39.8% | |
| Market (SPY) | -2.9% | 55.3% |
| Sector (XLC) | -0.1% | 59.2% |
Fundamental Drivers
The 120.2% change in GOOGL stock from 3/31/2025 to 4/22/2026 was primarily driven by a 64.7% change in the company's P/E Multiple.| (LTM values as of) | 3312025 | 4222026 | Change |
|---|---|---|---|
| Stock Price ($) | 154.11 | 339.32 | 120.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 350,018 | 402,837 | 15.1% |
| Net Income Margin (%) | 28.6% | 32.8% | 14.7% |
| P/E Multiple | 18.8 | 31.0 | 64.7% |
| Shares Outstanding (Mil) | 12,229 | 12,074 | 1.3% |
| Cumulative Contribution | 120.2% |
Market Drivers
3/31/2025 to 4/22/2026| Return | Correlation | |
|---|---|---|
| GOOGL | 120.2% | |
| Market (SPY) | 16.3% | 60.1% |
| Sector (XLC) | 23.3% | 63.9% |
Fundamental Drivers
The 229.8% change in GOOGL stock from 3/31/2023 to 4/22/2026 was primarily driven by a 54.7% change in the company's Net Income Margin (%).| (LTM values as of) | 3312023 | 4222026 | Change |
|---|---|---|---|
| Stock Price ($) | 102.88 | 339.32 | 229.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 282,836 | 402,837 | 42.4% |
| Net Income Margin (%) | 21.2% | 32.8% | 54.7% |
| P/E Multiple | 22.1 | 31.0 | 40.5% |
| Shares Outstanding (Mil) | 12,863 | 12,074 | 6.5% |
| Cumulative Contribution | 229.8% |
Market Drivers
3/31/2023 to 4/22/2026| Return | Correlation | |
|---|---|---|
| GOOGL | 229.8% | |
| Market (SPY) | 63.3% | 57.6% |
| Sector (XLC) | 109.5% | 69.4% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| GOOGL Return | 65% | -39% | 58% | 36% | 66% | 6% | 282% |
| Peers Return | 25% | -44% | 89% | 47% | 10% | -1% | 112% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 3% | 88% |
Monthly Win Rates [3] | |||||||
| GOOGL Win Rate | 83% | 25% | 67% | 67% | 75% | 50% | |
| Peers Win Rate | 60% | 30% | 75% | 68% | 47% | 40% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| GOOGL Max Drawdown | -2% | -42% | -2% | -6% | -23% | -13% | |
| Peers Max Drawdown | -9% | -52% | -3% | -6% | -19% | -18% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: MSFT, AMZN, META, AAPL, NFLX.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 4/22/2026 (YTD)
How Low Can It Go
| Event | GOOGL | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -44.3% | -25.4% |
| % Gain to Breakeven | 79.6% | 34.1% |
| Time to Breakeven | 448 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -30.9% | -33.9% |
| % Gain to Breakeven | 44.7% | 51.3% |
| Time to Breakeven | 109 days | 148 days |
| 2018 Correction | ||
| % Loss | -23.4% | -19.8% |
| % Gain to Breakeven | 30.6% | 24.7% |
| Time to Breakeven | 126 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -65.3% | -56.8% |
| % Gain to Breakeven | 188.1% | 131.3% |
| Time to Breakeven | 1,400 days | 1,480 days |
Compare to MSFT, AMZN, META, AAPL, NFLX
In The Past
Alphabet's stock fell -44.3% during the 2022 Inflation Shock from a high on 11/18/2021. A -44.3% loss requires a 79.6% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About Alphabet (GOOGL)
AI Analysis | Feedback
- Alphabet is like "Amazon for the internet's information and advertising," combined with a leading cloud computing service.
- Alphabet is like a combination of Meta (Facebook) and Microsoft, dominating digital advertising, consumer software platforms (Android, Chrome), and enterprise cloud services.
AI Analysis | Feedback
- Search Engine (Google Search): Provides information retrieval across the internet.
- Advertising Platforms (Google Ads): Offers advertising solutions for businesses across Google's vast network.
- Mobile Operating System (Android): Powers a wide range of smartphones and other devices.
- Web Browser (Chrome): A popular web browser for accessing the internet.
- Productivity & Collaboration Tools (Gmail, Drive, Photos, Maps): A suite of services for email, cloud storage, photo management, and navigation.
- Digital Content Store (Google Play): A platform for downloading apps, games, movies, and other digital content.
- Video Hosting & Streaming (YouTube): A platform for users to upload, watch, and share videos, including non-advertising subscription services.
- Consumer Hardware (Pixel, Nest, Fitbit): Manufactures smartphones, smart home devices, and wearable fitness trackers.
- Cloud Computing Services (Google Cloud): Offers infrastructure, platform, and other cloud services for enterprises.
- Enterprise Collaboration Software (Google Workspace): Provides cloud-based productivity and collaboration tools like Gmail, Docs, and Meet for businesses.
- Health Technology Services: Develops and sells health-related technology and services.
- Other Internet Services: Engages in various other internet-based services.
AI Analysis | Feedback
Major Customers of Alphabet (GOOGL)
Alphabet Inc. primarily sells its products and services to other companies. Its major customers fall into two broad categories:
- Advertisers: A vast number of businesses across virtually every industry globally utilize Alphabet's advertising platforms (Google Search, YouTube, Google Display Network) to reach individuals. These range from small and medium-sized businesses to large multinational corporations. Due to the sheer volume and proprietary nature of advertising relationships, Alphabet does not typically disclose a comprehensive list of its major advertising customers. Effectively, any public company that advertises online is a customer.
-
Enterprise and Cloud Customers: Businesses of all sizes subscribe to Google Cloud services, which include infrastructure, platforms, and Google Workspace collaboration tools. Alphabet has publicly announced numerous major enterprise customers for its Google Cloud segment. Examples of such major public company customers include:
- Coca-Cola Co (KO)
- Target Corp (TGT)
- The Home Depot Inc (HD)
- Ford Motor Company (F)
- Goldman Sachs Group Inc (GS)
- PayPal Holdings Inc (PYPL)
- LVMH Moët Hennessy Louis Vuitton SE (LVMUY)
While Alphabet also sells hardware (e.g., Pixel phones, Nest products) and digital content directly to individuals, its primary revenue streams and major customer relationships are with other businesses.
AI Analysis | Feedback
- Taiwan Semiconductor Manufacturing Company Limited (TSM)
- Samsung Electronics Co., Ltd. (005930.KS)
- Qualcomm Inc. (QCOM)
- Hon Hai Precision Industry Co., Ltd. (2317.TW)
- Sony Group Corporation (SONY)
- Micron Technology, Inc. (MU)
AI Analysis | Feedback
Sundar Pichai, Chief Executive Officer of Alphabet and Google
Sundar Pichai joined Google in 2004, where he led product management and innovation efforts for products such as Google Chrome, ChromeOS, and Google Drive. He also oversaw the development of applications like Gmail and Google Maps. Pichai was appointed CEO of Google in 2015 and subsequently became the CEO of its parent company, Alphabet Inc., in 2019. Before his tenure at Google, he worked in engineering and product management at Applied Materials and in management consulting at McKinsey & Company.
Anat Ashkenazi, Senior Vice President and Chief Financial Officer, Alphabet and Google
Anat Ashkenazi was appointed as the Senior Vice President and Chief Financial Officer of Alphabet and Google, with her role becoming effective on July 31, 2024. Prior to joining Alphabet, she served as the Chief Financial Officer at Eli Lilly and Company for over two decades, where she gained extensive experience across various financial, strategy, and operations roles within the company's global divisions.
Ruth Porat, President and Chief Investment Officer of Alphabet and Google
Ruth Porat has served as the President and Chief Investment Officer of Alphabet and Google since September 1, 2023. Before transitioning to her current role, she was the Senior Vice President and Chief Financial Officer of Alphabet and Google from May 2015 until July 2024. Prior to her time at Google, Porat held the position of Executive Vice President & Chief Financial Officer at Morgan Stanley from 2010 to 2015, having spent a total of 27 years at the firm. She is notably credited with structuring the European debt financing that helped save Amazon during the dot-com downturn in 2000. Additionally, she serves on the Board of Directors of Blackstone Inc., a prominent private equity firm.
Philipp Schindler, Senior Vice President, Chief Business Officer, Google
Philipp Schindler is the Senior Vice President and Chief Business Officer for Google, overseeing global and regional sales activities for Google and YouTube, as well as technical and consumer operations, product-sales strategy, and partnerships for Android and Chrome. He joined Google in 2005. Before Google, Schindler was a Senior Vice President of Marketing & Sales at AOL Germany, where he was a member of their management board for six years. He also previously served as head of marketing at CompuServe in Germany, an AOL Inc. subsidiary, and was involved in new media activities within Bertelsmann AG's junior talent program.
Kent Walker, President, Global Affairs, Chief Legal Officer and Secretary, Alphabet and Google
Kent Walker serves as the President of Global Affairs, Chief Legal Officer, and Secretary for Alphabet Inc. and its subsidiary Google. In this capacity, he is responsible for legal matters, public policy, government relations, content policy, and regulatory compliance. Walker joined Google in 2006. His career before Google included executive legal and policy roles at various technology and media companies such as eBay, Liberate Technologies, Netscape, and Airtouch Communications. He also previously served as an Assistant U.S. Attorney at the United States Department of Justice.
AI Analysis | Feedback
The key risks to Alphabet's business include:
- Regulatory and Antitrust Scrutiny: Alphabet faces intensifying regulatory pressure and ongoing antitrust lawsuits globally due to its dominant market positions in areas such as search, Android, and advertising technology. These legal and regulatory challenges could result in significant fines, forced changes to its business practices, or even a potential breakup of certain parts of the company.
- Disruption to Search and Advertising from AI: The emergence of generative artificial intelligence (AI) and intelligent agents presents a structural threat to Alphabet's core search and advertising business model. AI-powered search results, which provide direct answers, could reduce the need for users to click on traditional ads, potentially eroding query volume, ad impressions, and click-through rates. Furthermore, new AI-native competitors are not constrained by existing advertising revenue models, making it more challenging for Alphabet to innovate while protecting its cash-generating search engine.
- Dependence on Advertising Revenue: A substantial portion of Alphabet's total revenue, approximately 70-77%, is derived from advertising through Google Search and YouTube. This heavy reliance on advertising makes the company vulnerable to fluctuations in digital advertising trends, economic downturns, and increased competition within the digital advertising market.
AI Analysis | Feedback
AI-powered search engines, such as those integrated with large language models like ChatGPT, pose a clear emerging threat to Alphabet's core Search business by offering direct answers and potentially bypassing traditional link-based search results and associated advertising. This shift could fundamentally alter how users find information and consume digital content.
TikTok and other short-form video platforms represent another significant emerging threat, directly competing with YouTube for user attention, creator talent, and advertising revenue, particularly among younger demographics. This competition forces YouTube to adapt its content strategy and monetization models.
Apple's increasing emphasis on user privacy, including initiatives like App Tracking Transparency (ATT), presents an ongoing threat to Alphabet's advertising ecosystem. These changes restrict data collection and ad targeting capabilities across mobile platforms, potentially impacting the effectiveness and profitability of Google's mobile advertising business.
AI Analysis | Feedback
Addressable Markets for Alphabet Inc. (GOOGL) Main Products and Services
Alphabet Inc. operates across diverse and expansive addressable markets globally. The following outlines the market sizes for its key products and services, specifying the relevant regions where available:
Google Services Segment
- Digital Advertising (including Search and YouTube Ads): The global digital ad spending market size was approximately USD 650.00 billion in 2025 and is expected to exceed USD 1,593 billion by 2035. Similarly, the global online advertising market was valued at USD 359.88 billion in 2025 and is projected to grow to USD 1,344.68 billion by 2034. North America alone holds approximately 36% of the global online advertising market share.
- Mobile Operating Systems (Android): The global mobile operating system market size was estimated at USD 54.51 billion in 2025 and is expected to reach USD 57.97 billion in 2026. Another estimate places the market size at USD 69.48 billion in 2025, projected to reach USD 465.15 billion by 2033. Android commanded the largest market share of 71.45% in 2025.
-
Hardware (Pixel Phones, Fitbit Wearable Devices, Google Nest Home Products):
- Smartphones (Pixel Phones): The global smartphone market size was estimated at USD 520.45 billion in 2024 and is projected to reach USD 651.82 billion by 2030. Another report valued the market at USD 598.92 billion in 2025, with projections to expand from USD 642.64 billion in 2026 to USD 1,129.19 billion by 2034. Asia Pacific dominated the smartphone market with a 47.7% revenue share in 2024. North America contributed approximately 20% of global smartphone unit shipments in 2024.
- Wearable Technology (Fitbit): The global wearable technology market size was valued at USD 86.78 billion in 2025 and is projected to grow to USD 231.43 billion by 2034. North America held the largest market share, accounting for 38.80% of the global wearable technology market in 2025.
- Smart Home Devices (Google Nest): The global smart home market size was valued at USD 127.80 billion in 2024 and is projected to reach USD 537.27 billion by 2030. Another source estimated the market at USD 163.30 billion in 2025. North America held a significant share of over 25% of the smart home market in 2024 and dominated the global smart home devices market with a 39.45% market share in 2025.
- YouTube (Non-advertising services/Online Video Platform): The global online video platform market size was valued at USD 1.1 billion in 2024 and is expected to reach USD 2.8 billion by 2033. Another report estimated the market size at USD 11.27 billion in 2024, poised to grow to USD 47.04 billion by 2033. North America dominates this market with approximately 38% global market share.
- Google Play (App Store): The global mobile app stores market size was estimated at USD 71.7 billion in 2023 and is expected to reach USD 140.3 billion by 2032. The App Store ecosystem facilitated nearly USD 1.3 trillion in billings and sales worldwide in 2024. Google Play is projected to dominate the mobile application store market with a 59.4% market share in 2025.
Google Cloud Segment
- Cloud Computing (Google Cloud Platform and Google Workspace infrastructure/platform services): The global cloud computing market size was valued at USD 781.27 billion in 2025 and is projected to grow to USD 2,904.52 billion by 2034. North America dominated the cloud computing industry with a 52.0% market share in 2025, and the North America market stood at USD 406.08 billion in 2025, projected to grow to USD 466.77 billion in 2026. The US cloud computing market is expected to grow from USD 485.54 billion in 2025 to USD 721.30 billion by 2030.
- Enterprise Collaboration Software (Google Workspace): The global enterprise collaboration market size was valued at USD 53.93 billion in 2024 and is expected to reach USD 132.64 billion by 2032. North America dominated this market with a 42.60% share in 2025, and the U.S. market is projected to reach USD 17.06 billion by 2026.
Other Bets Segment
- Health Technology: The global HealthTech market size was valued at USD 908.5 billion in 2023 and is projected to reach USD 3,140.9 billion by 2033. Another report calculated the global digital health market size at USD 420.08 billion in 2025, predicted to increase to approximately USD 1,171.24 billion by 2035. North America held the largest market share in 2023 and dominated with a 38.45% revenue share in 2025.
AI Analysis | Feedback
```htmlExpected Drivers of Future Revenue Growth for Alphabet (GOOGL)
Over the next 2-3 years, Alphabet's revenue growth is expected to be driven by several key factors:
- AI Monetization across Products: Alphabet is actively integrating its Gemini AI models across its core products such as Search, YouTube, and Google Workspace, with promising early results in generating revenue. This includes enhanced AI-generated responses in Search and new AI tools designed for creators on YouTube. The company also anticipates new revenue streams from advertising within Gemini and improved targeting for Google Search.
- Google Cloud Expansion: Google Cloud is a significant engine for growth, propelled by robust demand for its cloud services, an increasing contribution from AI technologies, and a substantial, expanding backlog of business. Alphabet is making considerable investments in AI infrastructure to support this surging demand.
- YouTube Advertising and Subscriptions: YouTube's advertising revenue continues to grow, driven by both direct response and brand advertising. Furthermore, YouTube's subscription services, including YouTube Premium, YouTube Music, and YouTube TV, are a rapidly expanding revenue source, having reached $15 billion in annual revenue and increasing fivefold since 2019. The monetization of YouTube Shorts is also expected to contribute to this growth.
- Sustained Growth in Google Search and Other Advertising: Google Search remains the largest contributor to Alphabet's overall revenue growth, with strong performance in retail advertising. The ongoing integration of AI is anticipated to further enhance Search capabilities and bolster its continued revenue generation.
- Growth in Subscriptions Across Google Services: Beyond YouTube, subscriptions across other Google Services, such as Google One, are contributing to the company's overall revenue growth.
AI Analysis | Feedback
Share Repurchases
- Alphabet repurchased approximately $61.504 billion in shares in 2023 and $62.222 billion in 2024.
- The company executed $45.709 billion in share buybacks during 2025.
- Alphabet's Board of Directors authorized an additional $70 billion share repurchase program on April 23, 2025.
Share Issuance
- Alphabet issued approximately $22.5 billion in stock-based compensation to employees in 2023.
- The number of shares outstanding generally declined, with 13.599 billion in 2022, 13.313 billion in 2023, 13.079 billion in 2024, and 12.088 billion in 2025.
Outbound Investments
- In September 2022, Alphabet completed the acquisition of cybersecurity firm Mandiant for $5.4 billion to enhance Google Cloud's security offerings.
- Alphabet announced its largest acquisition to date in March 2025, agreeing to acquire cloud security startup Wiz for $32 billion to further strengthen Google Cloud.
- In December 2025, Alphabet announced the acquisition of Intersect Power LLC for $4.75 billion (including assumed debt) to secure power supply for its expanding data centers and AI development, with completion expected in the first half of 2026.
Capital Expenditures
- Capital expenditures were $32.251 billion in 2023 and $52.535 billion in 2024.
- Alphabet's capital expenditures reached approximately $91.447 billion in 2025, an increase from earlier estimates, primarily driven by investments in servers and data center construction.
- For 2026, Alphabet expects capital expenditures to be in the range of $175 billion to $185 billion, nearly doubling the 2025 figures, with a strong focus on AI infrastructure, cloud computing capacity, and next-generation data centers to meet customer demand and reduce cloud computing backlog.
Latest Trefis Analyses
Trade Ideas
Select ideas related to GOOGL.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 03272026 | META | Meta Platforms | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 8.8% | 8.8% | 0.0% |
| 03272026 | MSFT | Microsoft | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 3.8% | 3.8% | 0.0% |
| 03062026 | CARG | CarGurus | Insider | Insider Buys | Low D/EStrong Insider BuyingCompanies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | 1.2% | 1.2% | -8.3% |
| 02132026 | YELP | Yelp | Dip Buy | DB | CFO/Rev | Low D/EDip Buy with High Cash Flow MarginsBuying dips for companies with significant cash flows from operations and reasonable debt / market cap | 17.9% | 17.9% | -5.7% |
| 02132026 | TRIP | Tripadvisor | Dip Buy | DB | FCF Yield | Low D/EDip Buy with High Free Cash Flow YieldBuying dips for companies with significant free cash flow yield (FCF / Market Cap) and reasonable debt / market cap | 10.9% | 10.9% | -3.9% |
| 10312023 | GOOGL | Alphabet | Quality | Q | Momentum | UpsideQuality Stocks with Momentum and UpsideBuying quality stocks with strong momentum but still having room to run | 31.2% | 41.0% | 0.0% |
| 03312023 | GOOGL | Alphabet | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 26.2% | 45.5% | -0.0% |
| 09302022 | GOOGL | Alphabet | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 8.4% | 36.8% | -12.8% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 306.25 |
| Mkt Cap | 2,976.0 |
| Rev LTM | 354,145 |
| Op Inc LTM | 106,158 |
| FCF LTM | 59,688 |
| FCF 3Y Avg | 59,856 |
| CFO LTM | 137,493 |
| CFO 3Y Avg | 116,756 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 15.9% |
| Rev Chg 3Y Avg | 13.1% |
| Rev Chg Q | 16.5% |
| QoQ Delta Rev Chg LTM | 4.2% |
| Op Inc Chg LTM | 18.3% |
| Op Inc Chg 3Y Avg | 29.0% |
| Op Mgn LTM | 32.2% |
| Op Mgn 3Y Avg | 31.1% |
| QoQ Delta Op Mgn LTM | 0.2% |
| CFO/Rev LTM | 36.0% |
| CFO/Rev 3Y Avg | 33.1% |
| FCF/Rev LTM | 24.1% |
| FCF/Rev 3Y Avg | 24.1% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 2,976.0 |
| P/S | 8.9 |
| P/Op Inc | 28.4 |
| P/EBIT | 24.5 |
| P/E | 30.2 |
| P/CFO | 22.5 |
| Total Yield | 3.4% |
| Dividend Yield | 0.3% |
| FCF Yield 3Y Avg | 2.8% |
| D/E | 0.0 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 12.0% |
| 3M Rtn | 9.7% |
| 6M Rtn | -1.0% |
| 12M Rtn | 36.3% |
| 3Y Rtn | 161.5% |
| 1M Excs Rtn | 3.6% |
| 3M Excs Rtn | 5.9% |
| 6M Excs Rtn | -7.6% |
| 12M Excs Rtn | 2.5% |
| 3Y Excs Rtn | 92.4% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Google Services | 272,543 | 253,528 | 237,529 | 168,635 | 151,825 |
| Google Cloud | 33,088 | 26,280 | 19,206 | 13,059 | 8,918 |
| Other Bets | 1,527 | 1,068 | 753 | 657 | 659 |
| Hedging gains (losses) | 236 | 1,960 | 149 | 176 | 455 |
| Total | 307,394 | 282,836 | 257,637 | 182,527 | 161,857 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Google Services | 95,858 | 82,699 | 91,855 | 54,606 | 48,999 |
| Google Cloud | 1,716 | -1,922 | -3,099 | -5,607 | -4,645 |
| Other Bets | -4,095 | -4,636 | -5,281 | -4,476 | -4,824 |
| Alphabet-level activities | -9,186 | -1,299 | -4,761 | -3,299 | -5,299 |
| Total | 84,293 | 74,842 | 78,714 | 41,224 | 34,231 |
Price Behavior
| Market Price | $339.32 | |
| Market Cap ($ Bil) | 4,096.9 | |
| First Trading Date | 08/19/2004 | |
| Distance from 52W High | -1.2% | |
| 50 Days | 200 Days | |
| DMA Price | $308.41 | $274.61 |
| DMA Trend | up | down |
| Distance from DMA | 10.0% | 23.6% |
| 3M | 1YR | |
| Volatility | 28.4% | 28.6% |
| Downside Capture | 0.11 | 0.28 |
| Upside Capture | 68.21 | 147.28 |
| Correlation (SPY) | 37.8% | 46.4% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.23 | 0.82 | 0.89 | 1.18 | 0.96 | 1.11 |
| Up Beta | 1.70 | -0.18 | 0.22 | 1.79 | 1.00 | 1.03 |
| Down Beta | 1.07 | 0.60 | 1.11 | 0.81 | 0.69 | 1.15 |
| Up Capture | 92% | 59% | 73% | 160% | 170% | 193% |
| Bmk +ve Days | 7 | 16 | 27 | 65 | 139 | 424 |
| Stock +ve Days | 8 | 14 | 28 | 64 | 135 | 413 |
| Down Capture | 134% | 135% | 102% | 100% | 93% | 101% |
| Bmk -ve Days | 12 | 23 | 33 | 58 | 110 | 323 |
| Stock -ve Days | 14 | 28 | 35 | 62 | 117 | 337 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GOOGL | |
|---|---|---|---|---|
| GOOGL | 131.3% | 28.6% | 2.92 | - |
| Sector ETF (XLC) | 35.1% | 13.5% | 1.97 | 56.3% |
| Equity (SPY) | 26.7% | 12.5% | 1.77 | 48.9% |
| Gold (GLD) | 38.9% | 27.4% | 1.19 | 7.6% |
| Commodities (DBC) | 23.5% | 16.2% | 1.32 | 3.8% |
| Real Estate (VNQ) | 15.6% | 13.6% | 0.82 | 16.7% |
| Bitcoin (BTCUSD) | -12.8% | 42.6% | -0.21 | 22.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GOOGL | |
|---|---|---|---|---|
| GOOGL | 24.5% | 30.9% | 0.75 | - |
| Sector ETF (XLC) | 10.0% | 20.7% | 0.39 | 77.2% |
| Equity (SPY) | 10.5% | 17.1% | 0.48 | 68.4% |
| Gold (GLD) | 21.5% | 17.8% | 0.99 | 10.3% |
| Commodities (DBC) | 10.7% | 18.8% | 0.47 | 12.6% |
| Real Estate (VNQ) | 3.6% | 18.8% | 0.09 | 36.8% |
| Bitcoin (BTCUSD) | 3.8% | 56.4% | 0.29 | 27.6% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GOOGL | |
|---|---|---|---|---|
| GOOGL | 24.4% | 28.9% | 0.81 | - |
| Sector ETF (XLC) | 9.8% | 22.3% | 0.52 | 81.5% |
| Equity (SPY) | 13.8% | 17.9% | 0.66 | 71.9% |
| Gold (GLD) | 13.9% | 15.9% | 0.73 | 7.4% |
| Commodities (DBC) | 8.1% | 17.6% | 0.38 | 20.2% |
| Real Estate (VNQ) | 5.4% | 20.7% | 0.23 | 42.1% |
| Bitcoin (BTCUSD) | 68.1% | 66.9% | 1.07 | 19.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 2/4/2026 | -0.5% | -6.6% | -10.4% |
| 10/29/2025 | 2.5% | 3.5% | 14.7% |
| 7/23/2025 | 1.0% | 3.3% | 5.0% |
| 4/24/2025 | 1.7% | 1.3% | 5.8% |
| 2/4/2025 | -7.3% | -10.2% | -16.5% |
| 10/29/2024 | 2.8% | 0.0% | -0.3% |
| 7/23/2024 | -5.0% | -6.3% | -8.8% |
| 4/25/2024 | 10.2% | 6.8% | 12.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 15 | 15 | 14 |
| # Negative | 9 | 9 | 10 |
| Median Positive | 3.8% | 3.5% | 8.0% |
| Median Negative | -5.0% | -6.6% | -8.7% |
| Max Positive | 10.2% | 13.2% | 16.6% |
| Max Negative | -9.5% | -13.4% | -16.5% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 12/31/2025 | 02/05/2026 | 10-K |
| 09/30/2025 | 10/30/2025 | 10-Q |
| 06/30/2025 | 07/24/2025 | 10-Q |
| 03/31/2025 | 04/25/2025 | 10-Q |
| 12/31/2024 | 02/05/2025 | 10-K |
| 09/30/2024 | 10/30/2024 | 10-Q |
| 06/30/2024 | 07/24/2024 | 10-Q |
| 03/31/2024 | 04/26/2024 | 10-Q |
| 12/31/2023 | 01/31/2024 | 10-K |
| 09/30/2023 | 10/25/2023 | 10-Q |
| 06/30/2023 | 07/26/2023 | 10-Q |
| 03/31/2023 | 04/26/2023 | 10-Q |
| 12/31/2022 | 02/03/2023 | 10-K |
| 09/30/2022 | 10/26/2022 | 10-Q |
| 06/30/2022 | 07/27/2022 | 10-Q |
| 03/31/2022 | 04/27/2022 | 10-Q |
Recent Forward Guidance [BETA]
Latest: Q4 2025 Earnings Reported 2/4/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Capital Expenditures | 175.00 Bil | 180.00 Bil | 185.00 Bil | 95.7% | Higher New | Guidance: 92.00 Bil for 2025 | |
Prior: Q3 2025 Earnings Reported 10/29/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2025 Capital Expenditures | 91.00 Bil | 92.00 Bil | 93.00 Bil | 8.2% | Raised | Guidance: 85.00 Bil for 2025 | |
GOOGL Trade Sentinel
MARKET WEIGHT (Score 5-6)
CONVICTION RATIONALE
The company is executing exceptionally well, with accelerating growth in both the core Search business and the hyper-growth Cloud segment. However, the valuation offers a nearly symmetrical risk/reward profile at the current price. Significant, tangible structural risks from global regulators and the potential for AI to cannibalize the core, high-margin Search business prevent a more bullish stance. GOOGL is a high-quality hold, but the current price does not offer a compelling enough asymmetry for an overweight position.
STOCK ARCHETYPE
Primary: 'Quality Compounder / Stalwart' | Secondary: 'High-Beta Compounder'Primarily a Type B Stalwart due to the immense profitability and dominant moat of its core Search business. A secondary Type A classification is warranted by the hyper-growth, market-share-gaining characteristics of Google Cloud, which is becoming a material driver of the overall growth story.
INVESTMENT THESIS
The primary driver for upside is the accelerating, market-share-gaining growth in Google Cloud, fueled by enterprise demand for AI infrastructure. This is not a theoretical opportunity but a tangible one, evidenced by the platform's growth significantly outpacing peers and its backlog doubling, providing high visibility into future revenue.
- Google Cloud revenue growth accelerated to 48% YoY in Q4 2025, significantly outpacing AWS (24%) and Microsoft Intelligent Cloud (29%).
- Google Cloud backlog more than doubled YoY to $240B, with a 55% sequential increase, indicating a massive pull-forward of future revenue.
- The number of billion-dollar Cloud deals in 2025 surpassed the previous three years combined, signaling strong enterprise adoption.
- Management guided a massive increase in 2026 CapEx to $175B-$185B, a demand-backed signal of the infrastructure required to service the growing backlog and AI demand.
PRIMARY RISK
The primary risk is a two-pronged attack on the core Search business's profitability. Firstly, the EU's Digital Markets Act (DMA) may force Google to share proprietary search data, eroding its primary competitive moat. Secondly, the internal shift to more expensive, AI-powered search answers (AI Overviews) risks cannibalizing the highly profitable ad-click model without a proven, equally profitable replacement.
- The EU Commission sent preliminary findings in April 2026 requiring search data sharing, with a final decision expected by July 2026.
- Gartner forecasts a 25% decline in traditional search volume by 2026 due to AI chatbots, highlighting the cannibalization threat from new interfaces.
- Management has not yet quantified the unit economics or margin impact of the transition to AI Overviews in Search.
| KPI | Threshold | Rationale |
|---|---|---|
| Google Cloud Revenue Growth YoY | > 40% | Must remain significantly above peers (AWS/Azure) to validate the market share gain thesis and justify the premium multiple. Any drop below 35% would be a major concern. |
| Google Search & other Revenue Growth YoY | > 12% | The core business needs to demonstrate continued resilience and successful AI integration. A deceleration into the single digits would signal that cannibalization or competitive threats are becoming material. |
| Google Cloud Backlog (Sequential Growth) | Positive sequential growth | This is the most critical leading indicator for future Cloud revenue. Any flattening or decline in the backlog would precede a revenue slowdown and break the alpha thesis. |
AI Growth Engine vs. Structural Profit Threats
BULL VIEW
Cloud is re-accelerating (48% YoY growth) and gaining share, driven by a doubling backlog to $240B. This is a durable new growth engine justifying the valuation.
CORE TENSION
Can hyper-growth in Google Cloud, driven by AI demand, outpace the dual threats of regulatory pressure and AI-driven cannibalization of the high-margin core Search business?
PREVAILING SENTIMENT
Google Cloud's 48% YoY revenue growth and $240B backlog show the bull case is firing, but the EU's preliminary findings in April 2026 requiring data sharing give the bear case immediate, tangible evidence of moat erosion.
BEAR VIEW
EU's DMA forces data sharing, eroding the Search moat. Concurrently, expensive AI Overviews risk cannibalizing profitable ad-clicks, causing structural margin compression.
| Timeline | Event & Metric To Watch |
|---|---|
By July 27, 2026 | EU Digital Markets Act (DMA) Final Remedies Watch: Headline: Mandated access to sensitive ranking data or material changes to the Search results page (SERP), which would directly impact monetization and the core data moat. |
Late April / Early May 2026 | Q1 2026 Earnings Call Watch: Google Cloud Revenue Growth must remain >40% to sustain the market share gain narrative vs. the 48% baseline set in Q4 2025. Also watch for Search revenue deceleration. |
May 19-20, 2026 | Google I/O 2026 Developer Conference Watch: Headline: Demos of next-gen Gemini models must show clear superiority over competitors, accompanied by a tangible monetization strategy for new AI features in Search and Cloud. |
Late July 2026 | Q2 2026 Earnings Call Watch: Sequential growth in Google Cloud Backlog. Any flattening or decline from the Q1 2026 level would be a major red flag for future revenue growth. |
| Date | Event | Stock Impact |
|---|---|---|
2025-10-27 | Q3 2025 Earnings Report Details: Reported strong results that began the re-acceleration narrative, with Search growing 15% YoY and Cloud growing 34% YoY, setting the stage for future beats. | Rose significantly by 3.60% $259.56 -> $268.90 |
2025-11-04 | Renewed EU Antitrust Headlines Details: Stock fell over two sessions on renewed EU antitrust headlines, a recurring theme that creates volatility and overhang for the stock. | Fell notably by -2.18% $283.33 -> $277.16 |
2026-02-02 | FY2026 CapEx Guidance Increase Details: Management guided a massive increase in 2026 CapEx to $175B-$185B to support AI infrastructure demand, which the market interpreted as a bullish long-term signal. | Modest 1.68% gain $337.76 -> $343.44 |
2026-02-02 | Q4 2025 Earnings Report Details: Reported accelerating growth in Google Cloud revenue to 48% YoY and Search to 17% YoY. Cloud backlog doubled to $240B. Stock reaction was positive on strong operational results. | Modest 1.68% gain $337.76 -> $343.44 |
2026-04-02 | Principal Accounting Officer Resignation Details: Company announced resignation of VP, Corporate Controller, effective April 9, 2026. This governance signal had a minimal immediate impact on the stock price. | Muted (-0.54%) $297.39 -> $295.77 |
2026-04-15 | EU DMA Preliminary Findings Details: European Commission sent preliminary findings requiring search data sharing. The muted stock reaction suggests the market had priced in this development, awaiting final remedies. | Modest 1.26% gain $332.91 -> $337.12 |
Position Sizing
1% - 3%
CONSERVATIVE
Stock trades at a moderate 2.2x market volatility. While revenue visibility is high, the Bearish sentiment, driven by a contested moat under direct regulatory assault, mandates a conservative position until the impact of the EU DMA remedies is clear.
Diversification Alternatives
MSFT
OTHERUnlike Google, Microsoft's primary regulatory risk is historical. Its key growth driver, Azure, is gaining cloud market share while Google's primary competitor, AWS, is losing share.
MA
OTHEROffers exposure to the secular growth of digital payments with a powerful network-effect moat, but is insulated from the direct AI cannibalization and data-sharing risks facing Google's core business.
Repricing Catalyst
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.