Alphabet's Investment Strategy Yields Significant Returns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 hours ago
0mins
Should l Buy GOOGL?
Source: Fool
- Staggering Investment Returns: Alphabet's $900 million investment in SpaceX in 2015 is projected to be worth between $107 billion and $122 billion by 2025, yielding a return of 19,400% to 22,200%, showcasing its unique investment insight and strategic value.
- Rapid Cloud Growth: Google Cloud achieved a 48% sales growth in Q4 2023, becoming the world's third-largest cloud infrastructure service platform, indicating Alphabet's strong competitiveness in cloud computing and artificial intelligence.
- AI Startup Investments: Over the past three years, Alphabet has invested more than $3 billion in Anthropic, holding approximately a 14% stake, with an expected valuation of $112 billion, reflecting a return of over 3,000% and highlighting its forward-looking positioning in AI.
- Strong Public Investment Portfolio: Alphabet purchased over 8.9 million shares of AST SpaceMobile in Q1 2025, with the stock price soaring from $25 to $85.53, representing a gain of over 200%, demonstrating the success of its public market investment strategy.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GOOGL?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
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: 339.320
Low
305.00
Averages
374.25
High
400.00
Current: 339.320
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.
EU Pressures Google to Open Android for Rival AI Search Engines
- Digital Markets Act Pressure: The EU is expected to pressure Google to allow rival AI search engines access to the Android operating system, aiming to dismantle Google's monopoly in the AI assistant market and promote competition and innovation.
- Security Concerns: Google opposes this demand, arguing that opening up Android would compromise user privacy and security, particularly regarding access to AI tools like OpenAI's ChatGPT and Anthropic's Claude, which could lead to data breaches and security vulnerabilities.
- Compliance Requirements: According to Bloomberg, EU regulators will require Google to specify how rival AI services should be granted an equally effective level of access to Android features, potentially reshaping the competitive landscape of the Android ecosystem.
- Potential Investigation Risks: Should Google resist the EU's demands, it may face a formal investigation that could result in financial penalties, negatively impacting Google's operations and financial health.
See More
Applied Digital Signs $7.5 Billion Data Center Lease with Hyperscaler
- Major Lease Agreement: Applied Digital has signed a 15-year lease worth $7.5 billion with a U.S.-based hyperscaler, increasing its total contracted lease revenue to over $23 billion, indicating strong growth potential in the data center market.
- Diversified Customer Base: The lease ensures that over 50% of total contracted revenue is backed by investment-grade customers, marking a significant step in enhancing the company's customer diversification and revenue quality, thereby boosting market confidence.
- Data Center Expansion Plans: The Delta Forge 1 data center is expected to be operational by mid-2027, with a compute capacity of 430 megawatts, further solidifying Applied Digital's position in the rapidly growing AI computing demand.
- Financing for Development: The company has also entered into agreements to borrow up to $600 million to support the development of the Polaris Forge 1 data center and other pre-lease and post-lease activities, demonstrating a proactive approach to future growth.
See More
Microsoft Introduces One-Time Retirement Program and Stock Reward Adjustments
- Retirement Program Launch: Microsoft has announced a one-time retirement program for U.S. senior directors and below, allowing eligible employees whose age and tenure total 70 years to choose this option, promoting personal development.
- Stock Reward Adjustments: The company is decoupling stock from cash bonuses in annual rewards, providing managers with greater flexibility to recognize high-performing employees, which is expected to enhance employee satisfaction.
- Voluntary Buyout Offer: For the first time, Microsoft is offering voluntary buyouts to a small percentage of its workforce, reflecting the significant changes the tech industry is undergoing due to the artificial intelligence boom, aimed at optimizing human resource allocation.
- Increased Capital Expenditure: Microsoft is ramping up capital spending on data centers to meet cloud clients' demands for computing power capable of handling generative AI models, indicating a strategic focus on technology investment.
See More
EU to Establish Guidelines for Google to Provide ChatGPT and Claude with Equivalent Features on Android as Offered to Gemini - Bloomberg News
Google's New Guidelines: The European Union has released guidelines for Google to grant access to ChatGPT and Claude, ensuring they have the same features available on Android as those on Gemini.
Focus on Accessibility: The guidelines emphasize the importance of making advanced AI features accessible across different platforms, promoting a more uniform user experience.
See More
GOOGLE UNDER EU PRESSURE TO MAKE ANDROID ACCESSIBLE TO GEMINI COMPETITORS - BLOOMBERG NEWS
Google's Pressure: Google is facing increasing pressure to open up its Android operating system to competitors, particularly in light of regulatory scrutiny and market competition.
Rivalry with Gemini: The company is also contending with rivals like Gemini, which is pushing for more innovation and flexibility within the Android ecosystem.
See More
Latest Wall Street Rating Updates
- Tesla Buy Rating: Bank of America reiterates Tesla as a buy, viewing the company as a leader in consumer autonomy and expecting it to quickly become a leader in robotaxi services, highlighting its strong potential in the future mobility market.
- Nvidia Market Leadership: TD Cowen maintains Nvidia as a buy despite Google's launch of competing AI chips, believing Nvidia remains the market leader in performance and software ecosystem breadth, indicating its sustained competitive advantage in the AI sector.
- Berkshire Target Price Increase: UBS raises Berkshire Hathaway's price target from $578 to $581, noting that the stock is trading at a discount to its intrinsic value and anticipating continued share repurchases, which could influence investor sentiment positively.
- IBM Defensive Investment: Bank of America reiterates IBM as a buy, citing its high exposure to recurring sales and solid balance sheet as factors that make it a defensive investment, demonstrating stability and growth potential in an uncertain market environment.
See More
EU Pressures Google to Open Android for Rival AI Search Engines
- Digital Markets Act Pressure: The EU is expected to pressure Google to allow rival AI search engines access to the Android operating system, aiming to dismantle Google's monopoly in the AI assistant market and promote competition and innovation.
- Security Concerns: Google opposes this demand, arguing that opening up Android would compromise user privacy and security, particularly regarding access to AI tools like OpenAI's ChatGPT and Anthropic's Claude, which could lead to data breaches and security vulnerabilities.
- Compliance Requirements: According to Bloomberg, EU regulators will require Google to specify how rival AI services should be granted an equally effective level of access to Android features, potentially reshaping the competitive landscape of the Android ecosystem.
- Potential Investigation Risks: Should Google resist the EU's demands, it may face a formal investigation that could result in financial penalties, negatively impacting Google's operations and financial health.
See More
Applied Digital Signs $7.5 Billion Data Center Lease with Hyperscaler
- Major Lease Agreement: Applied Digital has signed a 15-year lease worth $7.5 billion with a U.S.-based hyperscaler, increasing its total contracted lease revenue to over $23 billion, indicating strong growth potential in the data center market.
- Diversified Customer Base: The lease ensures that over 50% of total contracted revenue is backed by investment-grade customers, marking a significant step in enhancing the company's customer diversification and revenue quality, thereby boosting market confidence.
- Data Center Expansion Plans: The Delta Forge 1 data center is expected to be operational by mid-2027, with a compute capacity of 430 megawatts, further solidifying Applied Digital's position in the rapidly growing AI computing demand.
- Financing for Development: The company has also entered into agreements to borrow up to $600 million to support the development of the Polaris Forge 1 data center and other pre-lease and post-lease activities, demonstrating a proactive approach to future growth.
See More
Microsoft Introduces One-Time Retirement Program and Stock Reward Adjustments
- Retirement Program Launch: Microsoft has announced a one-time retirement program for U.S. senior directors and below, allowing eligible employees whose age and tenure total 70 years to choose this option, promoting personal development.
- Stock Reward Adjustments: The company is decoupling stock from cash bonuses in annual rewards, providing managers with greater flexibility to recognize high-performing employees, which is expected to enhance employee satisfaction.
- Voluntary Buyout Offer: For the first time, Microsoft is offering voluntary buyouts to a small percentage of its workforce, reflecting the significant changes the tech industry is undergoing due to the artificial intelligence boom, aimed at optimizing human resource allocation.
- Increased Capital Expenditure: Microsoft is ramping up capital spending on data centers to meet cloud clients' demands for computing power capable of handling generative AI models, indicating a strategic focus on technology investment.
See More
EU to Establish Guidelines for Google to Provide ChatGPT and Claude with Equivalent Features on Android as Offered to Gemini - Bloomberg News
Google's New Guidelines: The European Union has released guidelines for Google to grant access to ChatGPT and Claude, ensuring they have the same features available on Android as those on Gemini.
Focus on Accessibility: The guidelines emphasize the importance of making advanced AI features accessible across different platforms, promoting a more uniform user experience.
See More
GOOGLE UNDER EU PRESSURE TO MAKE ANDROID ACCESSIBLE TO GEMINI COMPETITORS - BLOOMBERG NEWS
Google's Pressure: Google is facing increasing pressure to open up its Android operating system to competitors, particularly in light of regulatory scrutiny and market competition.
Rivalry with Gemini: The company is also contending with rivals like Gemini, which is pushing for more innovation and flexibility within the Android ecosystem.
See More
Latest Wall Street Rating Updates
- Tesla Buy Rating: Bank of America reiterates Tesla as a buy, viewing the company as a leader in consumer autonomy and expecting it to quickly become a leader in robotaxi services, highlighting its strong potential in the future mobility market.
- Nvidia Market Leadership: TD Cowen maintains Nvidia as a buy despite Google's launch of competing AI chips, believing Nvidia remains the market leader in performance and software ecosystem breadth, indicating its sustained competitive advantage in the AI sector.
- Berkshire Target Price Increase: UBS raises Berkshire Hathaway's price target from $578 to $581, noting that the stock is trading at a discount to its intrinsic value and anticipating continued share repurchases, which could influence investor sentiment positively.
- IBM Defensive Investment: Bank of America reiterates IBM as a buy, citing its high exposure to recurring sales and solid balance sheet as factors that make it a defensive investment, demonstrating stability and growth potential in an uncertain market environment.
See More
