From Nasdaq: 2025-05-14 12:14:00

Alphabet’s stock, GOOGL, has dropped 15.8% YTD due to challenging macroeconomic conditions and regulatory headwinds. The company plans to invest $75 billion in cloud infrastructure by 2025, expecting lower advertising revenue growth. Despite the hurdles, Alphabet’s focus on AI remains a key catalyst for growth.

Alphabet unveiled new AI capabilities at its Cloud Next 2025 conference, including Tensor Processing Units and Cloud WAN. Google Cloud’s partnership with NVIDIA and acquisition of Wiz highlight its focus on AI and cloud security. The company’s market share in cloud infrastructure is growing, positioning it as a strong competitor against Amazon and Microsoft.

Earnings estimates for GOOGL show upward trends for Q2 and 2025, with expected growth rates of 12.17% and 17.29% respectively. The company has consistently beaten earnings estimates in the past four quarters, with an average surprise of 14.64%. However, the stock is currently overvalued, trading at a premium compared to industry peers.

Alphabet’s stock is currently trading below the 50-day and 200-day moving averages, indicating a bearish trend. Despite this, Alphabet’s significant investments in cloud computing and AI technologies present growth opportunities amidst competitive and regulatory challenges. Investors may consider waiting for a more favorable entry point to invest in GOOGL.



Read more at Nasdaq: Alphabet Down 16% YTD: Are GOOGL Shares Buy, Sell or Hold on the Dip?