Finally, some good news for shares of Alphabet NASDAQ: GOOGL, Google's parent company. After a turbulent start to 2025, the stock has gained momentum following a strong earnings report, a dividend increase, and the authorization of a massive buyback program.
Alphabet (GOOG) 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) 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.
Google seems to be inundated with several challenges that threaten to scupper its market dominance. Yet, Google's recent results demonstrate that such fears could have been overplayed. The market also appears to be much less concerned about its antitrust challenges, as its valuation appears to have reflected the execution challenges.
Alphabet reported strong Q1 earnings, driven by double-digit growth in Cloud and Search, with Cloud's operating income surging 142%. Google announced a new $70.0B stock buyback and repurchased $15.1B of its own shares in Q1, reflecting an 80% free cash flow return percentage. Google's leading position in Cloud and continual AI spending set the stage for sustained growth in the firm's core markets.
Alphabet (GOOGL 1.70%) (GOOG 1.52%) is the parent company of Google, YouTube, self-driving mobility developer Waymo, and artificial intelligence (AI) lab DeepMind. It's one of just four companies in the world with a market capitalization of at least $2 trillion, reflecting its consistent long-term growth and the quality of its brands.
Robert Schein believes Alphabet (GOOGL) will set the tone for Mag 7 earnings on deck this week. He expects to see weaker guidance across the Big Tech spectrum but says the most important numbers will be cloud revenue and A.I.
Heavy is the head that wears the crown. Alphabet (GOOGL 1.70%) (GOOG 1.52%), the parent of Google, and Meta Platforms (META 2.65%), formerly known as Facebook, are facing antitrust litigation regarding the ways they have maintained their dominance in internet search and social media.
Alphabet's Q1 2025 earnings were strong, showing Google is safe from AI disruption. However, I maintain a HOLD rating due to lack of diversification and potential recession risks. Valuation appears reasonable with a P/E of 17 vs. a historical median of 22.5, projecting a potential $220+ share price at a 21.5x forward P/E. I think Alphabet's revenue relies too much on advertising (~75%), with promising but limited diversification from Cloud (28% growth) and Subscriptions/Platforms (18% growth).
It has been a rough three-month stretch for Alphabet (GOOGL 1.70%) (GOOG 1.52%) shareholders. Not only has marketwide weakness taken a toll on the stock, but what little hope was left that the company wouldn't be forced to divest itself of its Chrome web browser is seemingly slipping away.
What was the most heralded story from Google parent Alphabet's (GOOG 1.52%) (GOOGL 1.70%) first-quarter update Thursday evening? The company's better-than-expected revenue growth.
The reports of Google's death have been greatly exaggerated. If you've recently spent any time on X (formerly Twitter), you've probably read that Google search is a dying business.