Latest news with #GOOGL
Yahoo
11 hours ago
- Business
- Yahoo
Prediction: Alphabet Stock Will Soar After July 23
Key Points The market is worried about Google Search's market share. Several popular generative AI models are releasing search alternatives. Google Search's results showed no signs of weakness in the first quarter. 10 stocks we like better than Alphabet › Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) has an important date coming up on the calendar: July 23. After the market closes on that day, it gives investors an update on Q2 results, and I think these figures could be the catalyst Alphabet stock needs to send it soaring. Alphabet is currently one of the most disliked big tech stocks on the market, and has a fairly cheap valuation compared to its peers and the broader market. The market is particularly concerned about one item, and if Alphabet provides investors with good news on this front, the stock could be ripe for a surge. Alphabet trades at a deep discount to its peers and the broader market Alphabet has multiple companies underneath its umbrella, but the largest (and most important) is Google Search. Coincidentally, this is also the segment that investors are the most worried about, which is why the stock trades at a discount to its peers. Although it's recovered from its lows, Alphabet's stock still trades for less than 19 times forward earnings, which is far less than every other big tech stock trades for. Furthermore, the S&P 500 trades for 23.7 times forward earnings, so it's valued at a significant discount to the broader market. This conveys deep fear about Alphabet's future, as its past has been quite strong. In Q1, Alphabet's revenue increased 12% year over year, while diluted earnings per share (EPS) rose an impressive 49%. Those are strong results, and if any other big tech company posted earnings like that, they'd have a premium valuation. However, investors are worried about Google's potential to lose market share. The primary concern on Wall Street is that Google Search is poised to be disrupted by generative AI. More consumers are starting to use generative AI instead of Google Search, which could cause its ad revenue on the platform to decline. We've already seen some effects of this occur, as Google's search engine market share fell below 90% for the first time since 2015. Additionally, rumors suggest that various generative AI firms are set to launch artificial intelligence (AI)-first web browsers that would threaten Google Chrome. These are all massive headwinds for Google Search, but they haven't shown up in the results yet. All the Google Search fears haven't materialized yet In Q1, Google Search's revenue rose 10% year over year. That's in line with where a mature business should be growing, and at least from a financial standpoint, all the fears seem to be unfounded. One thing that could be occurring is confirmation bias, where Wall Street analysts and other people in the tech realm have replaced Google with generative AI, but they've forgotten about the vast majority of the population that is never going to make the switch to generative AI because the traditional Google Search techniques ingrained in their internet behavior works just fine for them. Furthermore, Google implemented AI search overviews, which provide a generative AI-powered overview of the Google Search results. For the vast majority of the population, this could be enough AI to keep them on the platform, which will cause Google Search to maintain its dominance. I think this is the most likely outcome, and with each passing quarter of Google Search posting strong results (which I believe it will do in Q2), this thesis will start to become more widely accepted. However, if you see Google Search revenue start to slip, don't be surprised if the stock sells off drastically, as it would be a confirmation of the bear case. I don't think that will happen, and I firmly believe that Alphabet is a great buy today because of the bearish sentiment that has yet to impact Alphabet's financial results. Should you buy stock in Alphabet right now? Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy. Prediction: Alphabet Stock Will Soar After July 23 was originally published by The Motley Fool
Yahoo
a day ago
- Business
- Yahoo
If You Invested $1000 in Alphabet a Decade Ago, This is How Much It'd Be Worth Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries. Another factor that can influence investors is FOMO, or the fear of missing out, especially with tech giants and popular consumer-facing stocks. What if you'd invested in Alphabet (GOOGL) ten years ago? It may not have been easy to hold on to GOOGL for all that time, but if you did, how much would your investment be worth today? Alphabet's Business In-Depth With that in mind, let's take a look at Alphabet's main business drivers. Alphabet is one of the most innovative companies in the modern technological age. Over the last few years, the company has evolved from primarily being a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare providers and others. In the online search arena, Google has a monopoly with more than 94% of the online search volume and company is gaining market share in the cloud-computing, driven by continued strength in Google Cloud Platform and Google also enjoys a dominant position in the autonomous vehicles market, thanks to Waymo's relentless efforts. In addition, it has bolstered its footprint in the healthcare industry with its life science division, Verily. The company has also become a renowned name in the world of entertainment on the back of is also known as the maker of smartwatches (Pixel Watch), laptops and tablets (Chromebooks), and smart home products (Google Nest).Alphabet, headquartered in Mountain View, CA, runs several businesses, most of which come under Google, which reports under two segments — Google Services and Google Cloud. The non-Google businesses fall under the Other Bets revenues were $350 billion in 2024, up 14% over 2023. Google Services, Google Cloud and Other Bets generated 87.1%, 12.4% and 0.5% of total revenues, Google Services includes products and services such as ads, Android, Chrome, devices, Gmail, Google Drive, Google Maps, Google Photos, Google Play, Search, and YouTube. The segment generates revenues primarily from performance and brand advertising, which remains crucial for the overall business. Ad revenues accounted for 75.6% of the total revenues in Cloud is comprised of Google Cloud Platform and Google Workspace. Its key capabilities include AI infrastructure, database and analytics, collaboration tools, cybersecurity and generative Bets is a combination of multiple businesses, generating revenues primarily from the sale of healthcare-related and internet services. Bottom Line Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Alphabet, if you bought shares a decade ago, you're likely feeling really good about your investment today. A $1000 investment made in July 2015 would be worth $5,247.99, or a gain of 424.80%, as of July 18, 2025, according to our calculations. This return excludes dividends but includes price appreciation. Compare this to the S&P 500's rally of 196.12% and gold's return of 183.10% over the same time frame. Analysts are anticipating more upside for GOOGL. Alphabet is riding on strong cloud and search growth. Google Cloud is benefiting from accelerated growth across AI infrastructure, enterprise AI platform Vertex and strong adoption of Generative AI solutions. The company expects capital expenditures in 2025 to be relatively higher than in 2024, aimed at building technical infrastructure, primarily for servers, followed by data centers and networking. Its dominant position in the search engine market is a strong growth driver. In first-quarter 2025, GOOGL saw continued double-digit revenue growth in Search. Alphabet surpassed 270 million paid subscriptions with YouTube and Google One as key drivers. However, increasing litigation issues are a concern. Intensifying competition from Microsoft and Amazon in cloud computing is a headwind. Shares have underperformed its industry year to date. Shares have gained 5.92% over the past four weeks and there have been 4 higher earnings estimate revisions for fiscal 2025 compared to none lower. The consensus estimate has moved up as well. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Errore nel recupero dei dati Effettua l'accesso per consultare il tuo portafoglio Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati Errore nel recupero dei dati
Yahoo
a day ago
- Business
- Yahoo
Buy, Sell or Hold Alphabet Stock? Key Tips Ahead of Q2 Earnings
Alphabet GOOGL is set to report second-quarter 2025 results on July 23. For second-quarter 2025, the Zacks Consensus Estimate for earnings is pegged at $2.13 per share, up by a penny over the past 30 days and indicates 12.7% year-over-year consensus mark for second-quarter revenues is pegged at $79.22 billion, indicating growth of 11.02% from the year-ago quarter's reported has an impressive earnings surprise history. GOOGL's earnings outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14.64%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Alphabet Inc. Price and EPS Surprise Alphabet Inc. price-eps-surprise | Alphabet Inc. Quote Let's see how things have shaped up for the upcoming announcement: Growing AI Usage in Search to Aid GOOGL's Q2 Results Alphabet's to-be-reported quarterly results are expected to benefit from solid momentum in Search and Cloud businesses. The integration of Generative AI (Gen AI) technology into the search engine has been benefiting Google Search. AI-powered Circle to Search is now available on more than 300 million Android devices, with people using it to shop, translate text, and learn more about the world around them. Circle to Search is driving additional Search and is gaining popularity among younger users. The addition of AI mode expands AI Overview's advanced reasoning, thinking and multimodal Zacks Consensus Estimate for second-quarter 2025 Search and other revenues is pegged at $52.36 billion, indicating 8% growth over the figure reported in the year-ago quarter. GOOGL Cloud Gaining Market Share Alphabet has been rapidly growing in the booming cloud computing market. Google Cloud has solidified its position as the third-largest provider in the highly competitive cloud infrastructure market against Amazon's AMZN cloud arm, Amazon Web Services (AWS), and Microsoft's MSFT Azure. The solid adoption of the Google Cloud Platform and Google Workspace is expected to have driven growth in the Google Cloud segment. According to Synergy Research Group data, Google Cloud, along with Microsoft, is gaining market share, while AWS continues to lead with a 29% market share in the first quarter of 2025. Alphabet and Microsoft had 22% and 12% market share, consensus mark for second-quarter 2025 Google Cloud revenues is pegged at $13.04 billion, indicating 26% growth over the figure reported in the year-ago GOOGL is suffering from a lack of capacity, and until new capacity comes online in 2025, cloud revenues are expected to see increased variability. This is expected to have hurt Alphabet's Google Cloud revenues in the to-be-reported quarter. GOOGL Shares Lag Sector, Industry Image Source: Zacks Investment Research Alphabet's shares have declined 3.1% year to date, underperforming the Zacks Internet Services industry and the Zacks Computer & Technology sector. Over the same timeframe, the sector has returned 9.5% while the industry has dropped 0.9%. GOOGL Stock's Performance GOOGL shares are overvalued, as suggested by Value Score C. Currently, GOOGL is trading at a premium, with a forward 12-month Price/Sales of 6.43X compared with the industry's 5.49X. Price/Sales Ratio (F12M) Image Source: Zacks Investment Research Technically, GOOGL shares are displaying a bullish trend as they trade above the 50-day and 200-day moving averages. GOOGL Trades Above 50-day & 200-day SMAs Image Source: Zacks Investment Research Cloud Growth to Drive GOOGL Prospects Alphabet is benefiting from an expanding clientele and rich partner base. Google Cloud is benefiting from its partnership with NVIDIA NVDA. Google Cloud was the first cloud provider to offer NVIDIA's B200 and GB200 Blackwell GPUs and will be offering its next-generation Vera Rubin GPUs. Google Cloud is becoming a preferred choice for enterprises planning to deploy AI agents thanks to the Agent Development Kit and a low-code tool offering Agent Designer. The addition of Wiz to Google Cloud will boost competitive prowess against the likes of Amazon and Microsoft in the cloud computing space. Google Cloud's expanding clientele is expected to boost Alphabet's top line. Google Cloud is now expanding its footprint based on the latest deals with Ecobank in Africa and BBVA. BBVA's deal with Google Cloud will enable Alphabet to deploy Google Workspace with Gemini across the global operations of the bank. Meanwhile, the Ecobank collaboration aims at transforming financial services with advanced analytics and AI and driving digital empowerment across Africa. This offers a significant growth opportunity for Google Cloud in one of the most underpenetrated regions of the globe. GOOGL Stock: Buy, Sell or Hold Ahead of Q2? Alphabet's growing Gen AI capabilities present a potential catalyst for future growth. Its dominant position in the Search market is a strong growth driver. However, a stretched valuation, stiff competition in the cloud space and growing regulatory headwinds make GOOGL shares risky for investors ahead of second-quarter 2025 currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Globe and Mail
a day ago
- Business
- Globe and Mail
Buy, Sell or Hold Alphabet Stock? Key Tips Ahead of Q2 Earnings
Alphabet GOOGL is set to report second-quarter 2025 results on July 23. For second-quarter 2025, the Zacks Consensus Estimate for earnings is pegged at $2.13 per share, up by a penny over the past 30 days and indicates 12.7% year-over-year growth. The consensus mark for second-quarter revenues is pegged at $79.22 billion, indicating growth of 11.02% from the year-ago quarter's reported figure. Alphabet has an impressive earnings surprise history. GOOGL's earnings outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14.64%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Alphabet Inc. Price and EPS Surprise Alphabet Inc. price-eps-surprise | Alphabet Inc. Quote Let's see how things have shaped up for the upcoming announcement: Growing AI Usage in Search to Aid GOOGL's Q2 Results Alphabet's to-be-reported quarterly results are expected to benefit from solid momentum in Search and Cloud businesses. The integration of Generative AI (Gen AI) technology into the search engine has been benefiting Google Search. AI-powered Circle to Search is now available on more than 300 million Android devices, with people using it to shop, translate text, and learn more about the world around them. Circle to Search is driving additional Search and is gaining popularity among younger users. The addition of AI mode expands AI Overview's advanced reasoning, thinking and multimodal capabilities. The Zacks Consensus Estimate for second-quarter 2025 Search and other revenues is pegged at $52.36 billion, indicating 8% growth over the figure reported in the year-ago quarter. GOOGL Cloud Gaining Market Share Alphabet has been rapidly growing in the booming cloud computing market. Google Cloud has solidified its position as the third-largest provider in the highly competitive cloud infrastructure market against Amazon 's AMZN cloud arm, Amazon Web Services (AWS), and Microsoft' s MSFT Azure. The solid adoption of the Google Cloud Platform and Google Workspace is expected to have driven growth in the Google Cloud segment. According to Synergy Research Group data, Google Cloud, along with Microsoft, is gaining market share, while AWS continues to lead with a 29% market share in the first quarter of 2025. Alphabet and Microsoft had 22% and 12% market share, respectively. The consensus mark for second-quarter 2025 Google Cloud revenues is pegged at $13.04 billion, indicating 26% growth over the figure reported in the year-ago quarter. However, GOOGL is suffering from a lack of capacity, and until new capacity comes online in 2025, cloud revenues are expected to see increased variability. This is expected to have hurt Alphabet's Google Cloud revenues in the to-be-reported quarter. GOOGL Shares Lag Sector, Industry Image Source: Zacks Investment Research Alphabet's shares have declined 3.1% year to date, underperforming the Zacks Internet Services industry and the Zacks Computer & Technology sector. Over the same timeframe, the sector has returned 9.5% while the industry has dropped 0.9%. GOOGL Stock's Performance GOOGL shares are overvalued, as suggested by Value Score C. Currently, GOOGL is trading at a premium, with a forward 12-month Price/Sales of 6.43X compared with the industry's 5.49X. Price/Sales Ratio (F12M) Technically, GOOGL shares are displaying a bullish trend as they trade above the 50-day and 200-day moving averages. GOOGL Trades Above 50-day & 200-day SMAs Cloud Growth to Drive GOOGL Prospects Alphabet is benefiting from an expanding clientele and rich partner base. Google Cloud is benefiting from its partnership with NVIDIA NVDA. Google Cloud was the first cloud provider to offer NVIDIA's B200 and GB200 Blackwell GPUs and will be offering its next-generation Vera Rubin GPUs. Google Cloud is becoming a preferred choice for enterprises planning to deploy AI agents thanks to the Agent Development Kit and a low-code tool offering Agent Designer. The addition of Wiz to Google Cloud will boost competitive prowess against the likes of Amazon and Microsoft in the cloud computing space. Google Cloud's expanding clientele is expected to boost Alphabet's top line. Google Cloud is now expanding its footprint based on the latest deals with Ecobank in Africa and BBVA. BBVA's deal with Google Cloud will enable Alphabet to deploy Google Workspace with Gemini across the global operations of the bank. Meanwhile, the Ecobank collaboration aims at transforming financial services with advanced analytics and AI and driving digital empowerment across Africa. This offers a significant growth opportunity for Google Cloud in one of the most underpenetrated regions of the globe. GOOGL Stock: Buy, Sell or Hold Ahead of Q2? Alphabet's growing Gen AI capabilities present a potential catalyst for future growth. Its dominant position in the Search market is a strong growth driver. However, a stretched valuation, stiff competition in the cloud space and growing regulatory headwinds make GOOGL shares risky for investors ahead of second-quarter 2025 results. Alphabet currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point in the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 5 Stocks Set to Double Each was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They include Stock #1: A Disruptive Force with Notable Growth and Resilience Stock #2: Bullish Signs Signaling to Buy the Dip Stock #3: One of the Most Compelling Investments in the Market Stock #4: Leader In a Red-Hot Industry Poised for Growth Stock #5: Modern Omni-Channel Platform Coiled to Spring Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%. Download Atomic Opportunity: Nuclear Energy's Comeback free today. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis Report
Globe and Mail
a day ago
- Business
- Globe and Mail
Prediction: Alphabet Stock Will Soar After July 23
Key Points The market is worried about Google Search's market share. Several popular generative AI models are releasing search alternatives. Google Search's results showed no signs of weakness in the first quarter. 10 stocks we like better than Alphabet › Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) has an important date coming up on the calendar: July 23. After the market closes on that day, it gives investors an update on Q2 results, and I think these figures could be the catalyst Alphabet stock needs to send it soaring. Alphabet is currently one of the most disliked big tech stocks on the market, and has a fairly cheap valuation compared to its peers and the broader market. The market is particularly concerned about one item, and if Alphabet provides investors with good news on this front, the stock could be ripe for a surge. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Alphabet trades at a deep discount to its peers and the broader market Alphabet has multiple companies underneath its umbrella, but the largest (and most important) is Google Search. Coincidentally, this is also the segment that investors are the most worried about, which is why the stock trades at a discount to its peers. GOOG PE Ratio (Forward) data by YCharts Although it's recovered from its lows, Alphabet's stock still trades for less than 19 times forward earnings, which is far less than every other big tech stock trades for. Furthermore, the S&P 500 trades for 23.7 times forward earnings, so it's valued at a significant discount to the broader market. This conveys deep fear about Alphabet's future, as its past has been quite strong. In Q1, Alphabet's revenue increased 12% year over year, while diluted earnings per share (EPS) rose an impressive 49%. Those are strong results, and if any other big tech company posted earnings like that, they'd have a premium valuation. However, investors are worried about Google's potential to lose market share. The primary concern on Wall Street is that Google Search is poised to be disrupted by generative AI. More consumers are starting to use generative AI instead of Google Search, which could cause its ad revenue on the platform to decline. We've already seen some effects of this occur, as Google's search engine market share fell below 90% for the first time since 2015. Additionally, rumors suggest that various generative AI firms are set to launch artificial intelligence (AI)-first web browsers that would threaten Google Chrome. These are all massive headwinds for Google Search, but they haven't shown up in the results yet. All the Google Search fears haven't materialized yet In Q1, Google Search's revenue rose 10% year over year. That's in line with where a mature business should be growing, and at least from a financial standpoint, all the fears seem to be unfounded. One thing that could be occurring is confirmation bias, where Wall Street analysts and other people in the tech realm have replaced Google with generative AI, but they've forgotten about the vast majority of the population that is never going to make the switch to generative AI because the traditional Google Search techniques ingrained in their internet behavior works just fine for them. Furthermore, Google implemented AI search overviews, which provide a generative AI-powered overview of the Google Search results. For the vast majority of the population, this could be enough AI to keep them on the platform, which will cause Google Search to maintain its dominance. I think this is the most likely outcome, and with each passing quarter of Google Search posting strong results (which I believe it will do in Q2), this thesis will start to become more widely accepted. However, if you see Google Search revenue start to slip, don't be surprised if the stock sells off drastically, as it would be a confirmation of the bear case. I don't think that will happen, and I firmly believe that Alphabet is a great buy today because of the bearish sentiment that has yet to impact Alphabet's financial results. Should you invest $1,000 in Alphabet right now? Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $674,281!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,415!* Now, it's worth noting Stock Advisor's total average return is 1,058% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025
