Alphabet (GOOGL) Stock Up 65% in 2025, Strong Start to 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Gemini AI Model Rise: At the start of 2025, Alphabet's Gemini has emerged as a leading generative AI model, integrated with Google Search and used millions of times daily, enhancing user experience and strengthening market competitiveness.
- Cloud Profitability Boost: Google Cloud achieved a remarkable 34% year-over-year revenue growth in Q3, with operating margins increasing from 17% to 24%, showcasing its potential to profit from AI spending and becoming a crucial pillar of Alphabet's business.
- Advertising Business Strong: Despite the focus on AI and cloud computing, Alphabet's advertising business remains robust, with analysts expecting a 15% revenue growth in Q4 and earnings per share rising from $2.15 to $2.66, a 24% increase.
- Optimistic Future Outlook: Analysts predict that Alphabet will exceed expectations in its upcoming earnings report, with a potential 5% stock price increase if results are strong, alongside an optimistic outlook for 2026, further attracting investors.
Analyst Views on GOOGL
Wall Street analysts forecast GOOGL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOGL is 338.25 USD with a low forecast of 279.00 USD and a high forecast of 390.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
34 Analyst Rating
27 Buy
7 Hold
0 Sell
Strong Buy
Current: 328.380
Low
279.00
Averages
338.25
High
390.00
Current: 328.380
Low
279.00
Averages
338.25
High
390.00
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.
