Alphabet’s stock performance has caught investors’ attention following its first quarter earnings report, which surpassed expectations. As the company prepares for several significant events in May, including the Google I/O developers conference and Marketing Live event, analysts believe these could serve as catalysts to boost Google stock further.
While Alphabet’s shares dipped approximately 13% in 2025, there was a notable uptick in April. The earnings report highlighted strong growth in internet search advertising, while cloud services remained steady despite YouTube slightly underperforming. Notably, the company reiterated a commitment to invest $75 billion in capital expenditures throughout 2025, particularly in artificial intelligence (AI).
Google’s foray into the AI sector is being closely watched, especially with its Gemini AI chatbot boasting 350 million active users as of March. Additionally, there are speculations about a potential licensing deal with Apple for Gemini, which could broaden its reach to iPhone users by late 2025.
With rising competition, particularly from OpenAI’s ChatGPT, Google has launched AI Overviews, which are designed to provide conversational summaries in search results. This feature currently boasts over 1.5 billion monthly active users. Furthermore, Alphabet’s cloud computing revenue grew by 28% in Q1, presenting opportunities for enhanced growth as investments in AI infrastructure ramp up.
In a landmark $32 billion acquisition, Alphabet agreed to buy cybersecurity firm Wiz, raising questions about its potential impact on cloud market share, particularly against giants like Amazon and Microsoft.
Despite its success, Google faces antitrust challenges that have raised concerns over its market practices in both advertising and search services. A recent federal judge ruling confirmed that the company employed tactics to maintain dominance, which could lead to significant legal ramifications, including potential divestitures of certain services.
Additionally, Alphabet’s autonomous vehicle segment, Waymo, continues to impress. The service has seen a marked increase in ridership and is expanding into new cities, increasing its visibility and importance in Google’s overall valuation.
Analysts express optimism about YouTube’s future, projecting it to surpass Disney in terms of earnings by 2025. This positive outlook is buoyed by its potential to capture a significant share of the pay TV and streaming markets, crucial in competing with platforms like TikTok.
As investors evaluate whether GOOGL stock is a buy, they must consider various factors, including technical ratings and market conditions. While there has been a dip in the stock’s relative strength rating, the company remains a focal point for technological innovation and competitiveness.
Overall, the upcoming events and ongoing developments in AI and cloud computing lend a hopeful perspective for Alphabet’s growth trajectory in the near future.