Alphabet investing $75 billion in cloud infrastructure in 2025 to compete with rivals Microsoft and Amazon

From Nasdaq: 2025-02-11 11:13:00

Alphabet’s stock performance has been strong, with a 26.4% return in the past year, outperforming the sector and industry. Despite a recent decline due to Google Cloud revenue slowdown, Alphabet aims to invest $75 billion in infrastructure in 2025 to compete with Microsoft and Amazon in cloud computing. Earnings estimates show growth but stock is overvalued.

Alphabet is leveraging AI to attract clients, with models like Gemini and Gen AI used by over 4.4 billion developers. AI is driving growth in search and cloud businesses, with strong adoption of Vertex AI and Trillium. However, earnings estimates for 2025 show a downward trend, indicating a challenging year ahead for Alphabet.

Alphabet’s dominance in the search engine market and cloud computing presents potential but faces regulatory headwinds. Lawsuits over search dominance, data privacy, and AI usage are ongoing. With a Zacks Rank #3 (Hold), investors may want to wait for a better entry point. Stock is trading above 200-day moving average but below 50-day, suggesting a mixed trend.



Read more at Nasdaq: Can GOOGL’s Cloud Investments Push the Stock Higher in 2025?