Alphabet's Stock Soars 130%, Attracting Investor Attention
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- Significant Revenue Growth: Alphabet's Q1 revenue surged 22% year-over-year to $109.9 billion, exceeding Wall Street expectations, showcasing the company's strong performance in the AI sector and further solidifying its market position.
- Robust Cloud Business: Google Cloud's revenue skyrocketed 63% year-over-year, with customer backlogs reaching $462 billion, nearly doubling from three months prior, indicating sustained demand for AI products and services that will drive future growth.
- Capital Expenditure Risks: Alphabet's capital expenditures totaled $91 billion in 2025, with projections for 2026 ranging from $180 billion to $190 billion, highlighting the company's aggressive investment in AI infrastructure while raising concerns about long-term returns.
- Attractive Valuation: Although Alphabet's P/E ratio stands at 29.6, a 62% increase from last year, analysts project its earnings per share to grow at a nearly 17% compound annual rate from 2025 to 2028, reflecting investor confidence in the company's future.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to fall
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 388.880
Low
305.00
Averages
374.25
High
400.00
Current: 388.880
Low
305.00
Averages
374.25
High
400.00
About GOOGL
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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