Insights from Alphabet's 133x Stock Growth Since IPO
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy GOOGL?
Source: Fool
- Significant Stock Growth: Since its IPO in August 2004, Alphabet's stock has increased over 133 times, with a compound annual growth rate exceeding 25%, demonstrating its strong market performance and investment appeal.
- Future Investment Potential: Even assuming a future average return of 15%, a $1,000 investment today could grow to over $18,821 in 21 years, showcasing the attractive returns of long-term investing.
- Market Challenges and Opportunities: While maintaining a 15% annual return in the future poses challenges, especially with a market cap exceeding $4 trillion, Alphabet still has the potential to be a core long-term portfolio staple.
- Innovation-Driven Strategy: If Alphabet continues to prioritize innovation as its core strategy, it is expected to maintain a strong market position, thereby providing investors with ongoing growth opportunities.
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 fall 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: 339.710
Low
279.00
Averages
338.25
High
390.00
Current: 339.710
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.
Alphabet's Q4 Earnings Anticipation
- Earnings Expectations: Alphabet is expected to report earnings per share of $2.63 and revenue of $111.42 billion, having beaten estimates in the last four quarters, indicating strong profitability and market confidence.
- Advertising Revenue Growth: The growth of advertising revenue is a critical driver for Alphabet, particularly as it faces competition from other platforms; investors should monitor this area to assess future profit potential.
- Analyst Rating Changes: Roth Capital raised Alphabet's price target from $310 to $365, while Raymond James upgraded its rating from Outperform to Strong Buy, increasing the target from $315 to $400, reflecting optimistic market expectations for its future performance.
- Stock Price Dynamics: Alphabet shares are currently trading 0.80% higher at $342.34, indicating positive investor sentiment ahead of the earnings report, which may signal confidence in the company's future growth.
See More
Destiny Wealth Partners Acquires New Position in VCLT
- New Position Established: On February 2, 2026, Destiny Wealth Partners, LLC disclosed a new position by acquiring 163,615 shares of Vanguard Long-Term Corporate Bond ETF (VCLT), with an estimated transaction value of $12.57 million, indicating confidence in the long-term bond market.
- Asset Allocation Proportion: This acquisition positions VCLT as a new investment representing 1.4% of Destiny Wealth Partners' $871 million in reportable U.S. equity assets, reflecting a strategic diversification in their investment portfolio.
- Market Performance Analysis: As of February 2, 2026, VCLT shares were priced at $75.80, up 7.2% over the past year but trailing the S&P 500 by 9.83 percentage points, indicating relative performance pressure against the broader market.
- Yield and Investment Strategy: With an annualized dividend yield of 5.52%, VCLT aims to track the Bloomberg U.S. 10+ Year Corporate Bond Index, making it suitable for investors seeking long-term fixed income, particularly as expectations for interest rate cuts may attract more investor interest.
See More
Alphabet Reports Strong Q4 Results, AI Spending Drives Growth
- Significant Revenue Growth: Alphabet's Q4 revenue increased by 18% year-over-year to $113.83 billion, surpassing the market expectation of $111.43 billion, demonstrating strong performance in search, network, and cloud businesses despite a slight decline in YouTube ads and subscriptions.
- Earnings Per Share Surge: The earnings per share (EPS) rose by 31% year-over-year to $2.82, significantly exceeding the market estimate of $2.63, indicating a marked improvement in the company's profitability and further solidifying investor confidence.
- Capital Expenditure Surge: Management forecasts capital expenditures for 2026 to range from $175 billion to $185 billion, well above the Street's estimate of $115 billion, highlighting the company's ongoing investment in artificial intelligence that will drive future growth.
- AI Driving Search Traffic: Concerns that AI would cannibalize search revenue have proven unfounded, as the Gemini app now boasts over 750 million monthly active users, with search usage hitting a quarterly record, indicating that AI investments are generating increased traffic to Google Search.
See More
Alphabet's 2026 Capex Forecast Exceeds Expectations
- Capex Expectations: Alphabet anticipates its 2026 capital expenditures will range from $175 billion to $185 billion, with the upper limit more than double its 2025 spending, indicating a significant commitment to AI infrastructure despite Wall Street's concerns about increased spending.
- Cloud Business Growth: The backlog in Google's cloud unit surged 55% sequentially and more than doubled year-over-year to $240 billion by the end of Q4, highlighting the company's robust performance in meeting customer demand for AI services, even as the overall software sector has lost 30% of its value in the last three months.
- AI User Growth: The monthly active users of Google's flagship AI app Gemini increased from 650 million to 750 million, demonstrating growing market acceptance of AI products and reflecting the strategic significance of the partnership with Apple to enhance the Siri virtual assistant.
- Infrastructure Investment: In 2025, Alphabet allocated approximately 60% of its capital expenditures to servers and 40% to data centers and networking equipment, indicating that ongoing investments in technical infrastructure will support future demand for AI services.
See More
U.S. Stocks Close Mixed, Notable Volatility in Tech Sector
- Dow Jones Gains: The Dow Jones Industrial Average rose by 0.53% to close at 49,501.30, indicating ongoing investor interest in blue-chip stocks despite mixed overall market performance.
- Alphabet Stock Decline: Alphabet's Class C shares fell by 2.16% to $333.34, even though it reached an intraday high of $344.25, reflecting cautious sentiment among investors towards tech stocks, which may impact future investment decisions.
- Qualcomm's Modest Rise: Qualcomm's stock increased by 1.16% to $148.89, but sharply dropped by 9.68% to $134.48 in after-hours trading, showcasing a divergence in market sentiment regarding its future outlook.
- Snap's Price Fluctuation: Snap's shares declined by 3.11% to $5.91, although they rebounded by 2.88% to $6.08 in after-hours trading, indicating a mix of concerns over profitability and hopes for a short-term recovery.
See More
Alphabet's Q4 Earnings Exceed Expectations
- Earnings Beat: Alphabet's fourth-quarter earnings and revenue surpassed Wall Street expectations, with its cloud unit achieving a nearly 48% year-over-year revenue increase, indicating strong market demand and growth potential.
- Significant Capex Increase: The company anticipates capital expenditures for 2026 to range between $175 billion and $185 billion, with the upper limit representing a more than doubling from last year, which, while reflecting confidence in future growth, has spooked investors, leading to a 3% drop in shares during after-hours trading.
- Negative Market Reaction: Despite strong cloud performance, overall market sentiment was affected, with the Nasdaq Composite falling 1.51% and the S&P 500 retreating 0.51%, indicating widespread weakness among tech stocks.
- AI Stocks Struggling: Amid a broader decline in AI-related stocks, AMD's shares plummeted 17.3% during regular trading, reflecting concerns over its profitability and further heightening investor caution towards tech equities.
See More
Alphabet's Q4 Earnings Anticipation
- Earnings Expectations: Alphabet is expected to report earnings per share of $2.63 and revenue of $111.42 billion, having beaten estimates in the last four quarters, indicating strong profitability and market confidence.
- Advertising Revenue Growth: The growth of advertising revenue is a critical driver for Alphabet, particularly as it faces competition from other platforms; investors should monitor this area to assess future profit potential.
- Analyst Rating Changes: Roth Capital raised Alphabet's price target from $310 to $365, while Raymond James upgraded its rating from Outperform to Strong Buy, increasing the target from $315 to $400, reflecting optimistic market expectations for its future performance.
- Stock Price Dynamics: Alphabet shares are currently trading 0.80% higher at $342.34, indicating positive investor sentiment ahead of the earnings report, which may signal confidence in the company's future growth.
See More
Destiny Wealth Partners Acquires New Position in VCLT
- New Position Established: On February 2, 2026, Destiny Wealth Partners, LLC disclosed a new position by acquiring 163,615 shares of Vanguard Long-Term Corporate Bond ETF (VCLT), with an estimated transaction value of $12.57 million, indicating confidence in the long-term bond market.
- Asset Allocation Proportion: This acquisition positions VCLT as a new investment representing 1.4% of Destiny Wealth Partners' $871 million in reportable U.S. equity assets, reflecting a strategic diversification in their investment portfolio.
- Market Performance Analysis: As of February 2, 2026, VCLT shares were priced at $75.80, up 7.2% over the past year but trailing the S&P 500 by 9.83 percentage points, indicating relative performance pressure against the broader market.
- Yield and Investment Strategy: With an annualized dividend yield of 5.52%, VCLT aims to track the Bloomberg U.S. 10+ Year Corporate Bond Index, making it suitable for investors seeking long-term fixed income, particularly as expectations for interest rate cuts may attract more investor interest.
See More
Alphabet Reports Strong Q4 Results, AI Spending Drives Growth
- Significant Revenue Growth: Alphabet's Q4 revenue increased by 18% year-over-year to $113.83 billion, surpassing the market expectation of $111.43 billion, demonstrating strong performance in search, network, and cloud businesses despite a slight decline in YouTube ads and subscriptions.
- Earnings Per Share Surge: The earnings per share (EPS) rose by 31% year-over-year to $2.82, significantly exceeding the market estimate of $2.63, indicating a marked improvement in the company's profitability and further solidifying investor confidence.
- Capital Expenditure Surge: Management forecasts capital expenditures for 2026 to range from $175 billion to $185 billion, well above the Street's estimate of $115 billion, highlighting the company's ongoing investment in artificial intelligence that will drive future growth.
- AI Driving Search Traffic: Concerns that AI would cannibalize search revenue have proven unfounded, as the Gemini app now boasts over 750 million monthly active users, with search usage hitting a quarterly record, indicating that AI investments are generating increased traffic to Google Search.
See More
Alphabet's 2026 Capex Forecast Exceeds Expectations
- Capex Expectations: Alphabet anticipates its 2026 capital expenditures will range from $175 billion to $185 billion, with the upper limit more than double its 2025 spending, indicating a significant commitment to AI infrastructure despite Wall Street's concerns about increased spending.
- Cloud Business Growth: The backlog in Google's cloud unit surged 55% sequentially and more than doubled year-over-year to $240 billion by the end of Q4, highlighting the company's robust performance in meeting customer demand for AI services, even as the overall software sector has lost 30% of its value in the last three months.
- AI User Growth: The monthly active users of Google's flagship AI app Gemini increased from 650 million to 750 million, demonstrating growing market acceptance of AI products and reflecting the strategic significance of the partnership with Apple to enhance the Siri virtual assistant.
- Infrastructure Investment: In 2025, Alphabet allocated approximately 60% of its capital expenditures to servers and 40% to data centers and networking equipment, indicating that ongoing investments in technical infrastructure will support future demand for AI services.
See More
U.S. Stocks Close Mixed, Notable Volatility in Tech Sector
- Dow Jones Gains: The Dow Jones Industrial Average rose by 0.53% to close at 49,501.30, indicating ongoing investor interest in blue-chip stocks despite mixed overall market performance.
- Alphabet Stock Decline: Alphabet's Class C shares fell by 2.16% to $333.34, even though it reached an intraday high of $344.25, reflecting cautious sentiment among investors towards tech stocks, which may impact future investment decisions.
- Qualcomm's Modest Rise: Qualcomm's stock increased by 1.16% to $148.89, but sharply dropped by 9.68% to $134.48 in after-hours trading, showcasing a divergence in market sentiment regarding its future outlook.
- Snap's Price Fluctuation: Snap's shares declined by 3.11% to $5.91, although they rebounded by 2.88% to $6.08 in after-hours trading, indicating a mix of concerns over profitability and hopes for a short-term recovery.
See More
Alphabet's Q4 Earnings Exceed Expectations
- Earnings Beat: Alphabet's fourth-quarter earnings and revenue surpassed Wall Street expectations, with its cloud unit achieving a nearly 48% year-over-year revenue increase, indicating strong market demand and growth potential.
- Significant Capex Increase: The company anticipates capital expenditures for 2026 to range between $175 billion and $185 billion, with the upper limit representing a more than doubling from last year, which, while reflecting confidence in future growth, has spooked investors, leading to a 3% drop in shares during after-hours trading.
- Negative Market Reaction: Despite strong cloud performance, overall market sentiment was affected, with the Nasdaq Composite falling 1.51% and the S&P 500 retreating 0.51%, indicating widespread weakness among tech stocks.
- AI Stocks Struggling: Amid a broader decline in AI-related stocks, AMD's shares plummeted 17.3% during regular trading, reflecting concerns over its profitability and further heightening investor caution towards tech equities.
See More
