Alphabet: AI Investments and Profit Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 08 2026
0mins
Should l Buy GOOGL?
Source: Fool
- Significant Profit Growth: Alphabet reported a net income of $132 billion in 2025, reflecting over a 30% year-over-year increase, which underscores the company's strong performance in market share and profitability, further solidifying its competitive position in high-growth sectors.
- Robust Cash Reserves: The company holds $126.8 billion in cash and cash equivalents, part of a total current asset figure of $206 billion, providing substantial financial support for future expansions and investments.
- Strong Cloud Business: Google Cloud achieved a net operating income of $5.3 billion in Q4 2025, marking a 48% year-over-year growth, indicating a surge in demand from enterprise AI customers and establishing itself as a key profit growth engine for the company.
- AI Investment Potential: Alphabet's investments in self-driving Waymo and the Gemini AI model, while requiring significant upfront capital, are expected to substantially enhance revenue and profitability in the long run, demonstrating the company's commitment to long-term growth in high-potential areas.
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Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise
33 Analyst Rating
26 Buy
7 Hold
0 Sell
Strong Buy
Current: 297.390
Low
305.00
Averages
374.25
High
400.00
Current: 297.390
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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- Cloud Computing Growth: Google Cloud's revenue surged 48% year-over-year in Q4, making it the fastest-growing among major cloud competitors, indicating its increasing popularity for AI application development, particularly due to its custom chips that offer better cost performance.
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