From Morningstar: 2025-04-25 05:40:00

Alphabet, trading as GOOGL, reported strong Q1 2025 results with a 12% sales growth and 230 basis point increase in operating margins. Google Cloud drove growth at 28% YoY. Despite macroeconomic challenges and antitrust concerns, Alphabet’s performance and AI monetization strategies continue to impress analysts.

Alphabet’s focus on AI monetization through Google Cloud, Gemini, AI Overviews, and ad targeting tools is proving successful. Google Cloud’s growth has slowed to 28% due to supply constraints, but a reacceleration is expected in the second half of 2025. Analysts maintain a fair value estimate of $237 per share for Alphabet stock.

Investor concerns about tariffs, antitrust cases, and digital ad spending have created a buying opportunity for Alphabet shares. The company is well-positioned to navigate antitrust challenges and maintain business value. Despite macroeconomic uncertainties, Alphabet plans to invest $75 billion in capital expenditure in 2025, particularly in generative AI.



Read more at Morningstar: Alphabet Earnings: AI Monetization Continues to Improve