GOOGL's second-quarter 2025 results are likely to reflect strength in Generative AI, Search, and Cloud amid rising cloud competition and stretched valuation.
Alphabet Inc. is undervalued due to market pessimism over competitive threats, but its fundamental AI advantages are overlooked. Alphabet's massive data moat, vertical integration, and self-sufficiency position it uniquely against Microsoft and Apple. Recent aggressive moves, like acquiring the Windsurf team, show Google is shifting from defense to offense in the AI war.
Get a deeper insight into the potential performance of Alphabet (GOOGL) for the quarter ended June 2025 by going beyond Wall Street's top-and-bottom-line estimates and examining the estimates for some of its key metrics.
Alphabet: This 'Threat' Could Actually Be A Blessing
Zacks.com users have recently been watching Alphabet (GOOG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
Alphabet (GOOGL) has received quite a bit of attention from Zacks.com users lately. Therefore, it is wise to be aware of the facts that can impact the stock's prospects.
Alphabet GOOGL and Apple AAPL are the two most well-known providers of consumer apps marketplaces through Google Pay Store and Apple App Store, respectively. The companies are taking initiatives to infuse artificial intelligence (AI) into their consumer-centric offerings to expand their user base and boost market share.
Alphabet is significantly undervalued, especially given its robust advertising business and rapid growth in Google Cloud. Applying fair multiples to Google's ad and cloud businesses suggests substantial upside, with the current market cap not reflecting these strengths. Concerns about AI competition are overblown; Google's core businesses remain dominant, and AI integration is driving new growth across products.
Perplexity AI CEO Aravind Srinivas has critiqued Google's ad-based business model as fundamentally incompatible with the future of AI agents. In an ‘Ask Me Anything' (AMA) session on the social media platform Reddit on July 16 and related media interviews, the leader of the AI-powered search engine company argued that Google is limited by its dependence on paid clicks.
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Determining the “best” stock to buy in a particular sector is a difficult exercise, particularly because there are simply so many options for investors to choose from with very different business models and long-term growth outlooks.
My Alphabet Inc. thesis, which I will detail for you today, has been playing out exactly as expected. The market has been panicking about search; meanwhile, Google Cloud Platform, YouTube, and Android continue to grow at healthy rates at ever bigger scales. Today, I will walk us through my Alphabet thesis; then, we will walk through the financials of each of the above-mentioned lines of business.