Google Cloud Boosts Alphabet as Revenue Soars Amid AI and Ad Growth
April 15, 2025
Alphabet's diversified revenue stream, with 78% coming from digital advertising, remains robust against trade tariffs, bolstered by its substantial international operations.
Currently, Alphabet's forward price-to-earnings (P/E) ratio stands at 17, indicating it is undervalued compared to peers averaging around 26, presenting a potential investment opportunity.
Google Cloud is rapidly gaining market share against competitors like Amazon AWS and Microsoft Azure, making it a significant growth driver for Alphabet.
The company's advertising revenue from Google Search grew by 12.5% year over year in the fourth quarter of 2024, showcasing its resilience despite competitive pressures.
Despite facing regulatory scrutiny and economic challenges, Alphabet's strong fundamentals and leadership in AI suggest a potential recovery and new all-time highs for its stock.
In the fourth quarter of 2024, Google Cloud's revenue surged over 29% year over year, highlighting its crucial role in Alphabet's future growth.
Alphabet's Waymo unit is establishing itself as a leader in the autonomous vehicle industry by testing self-driving technology in over 10 cities.
With a robust balance sheet featuring $96 billion in cash, Alphabet is well-prepared to navigate any macroeconomic challenges.
Analysts predict that Alphabet's earnings will grow by an average of 16% annually in the long term, indicating a favorable outlook for investors.
Alphabet reported a record-breaking revenue of $350 billion in 2024, with an earnings per share (EPS) of $8.04, and is projected to grow revenue by 11.2% to $389.3 billion in 2025.
The integration of AI across Alphabet's platforms, including Google Search, YouTube, and Android, leverages vast user data to enhance its AI capabilities.
As the AI revolution continues, Alphabet is well-positioned to benefit from advancements in machine learning and generative AI, despite recent fluctuations in its stock price.
Summary based on 3 sources
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Sources

The Motley Fool • Apr 12, 2025
Is Alphabet a Buy?
The Globe and Mail • Apr 15, 2025
4 Reasons Alphabet Could Be the Best Artificial Intelligence (AI) Stock to Buy Right Now
The Globe and Mail • Apr 15, 2025
4 Reasons Alphabet Could Be the Best Artificial Intelligence (AI) Stock to Buy Right Now