Overview
- Shares are up 67% year to date and have more than doubled from the 52-week low, with Nvidia a distant second among peers at 35.1%.
- Earlier in 2025 the stock traded at a discount to the S&P 500 and was the least expensive Magnificent Seven name.
- The company’s fundamentals include substantial free cash flow, rising margins, sizable share repurchases, dividend payments, and a solid balance sheet.
- Alphabet runs diversified operations across Cloud, YouTube, Android, other bets like Waymo and Google Fiber, and DeepMind, yet Google Search still produces over half of revenue and the majority of operating income.
- Large language models have been cited as the biggest threat to Search, with tools like OpenAI, Claude, Copilot, DeepSeek, and Grok raising concern, though the article argues Alphabet’s AI progress undermines the ‘AI loser’ label.