The Key Figure That Indicates Why Alphabet Is a Good Investment Right Now
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 08 2025
0mins
Should l Buy GOOGL?
Source: Yahoo Finance
Google Cloud Backlog Growth: Google Cloud's backlog surged to $155 billion in Q3, marking a 46% increase quarter-over-quarter and 82% year-over-year, driven largely by AI-related services and multi-year contracts with large enterprises.
Operating Margins Improvement: The operating margins for Google Cloud improved to 23.7% in Q3, up from 17% the previous year, indicating strong profitability as the company scales its operations.
AI Integration and Market Position: Over 70% of the backlog is tied to AI services, with significant adoption of Google’s Gemini models and TPUs, positioning Google Cloud to capture a larger share of the growing cloud market projected to reach $2 trillion by 2030.
Investor Outlook: Analysts predict that Google Cloud could contribute over 20% to Alphabet's revenue by 2027, and the current backlog provides investors with a roadmap for sustained profitability, making Alphabet a compelling buy in the tech sector.
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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: 308.700
Low
305.00
Averages
374.25
High
400.00
Current: 308.700
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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