Alphabet

An in-depth analysis of Alphabet aka Google. (Updated April 2025)

Key Takeaways

  • Strong Core Growth: Alphabet’s revenue hit $350.0 B in 2024, up ~14% YoY, with net income of $100.1 B (28.6% net margin). Ad revenues rebounded, and Google Cloud achieved full-year profitability, pushing operating margins to 32%.
  • Advertising Dominance: Google Search maintains ~90% global market share, and YouTube ad revenue exceeded $36 B in 2024. Together, these form the bedrock of Alphabet's profitability.
  • Diversification & Cloud Upside: Google Cloud revenue reached $43 B in 2024 (12% of total), growing ~30% YoY. While Google Services still drive profits, Cloud's positive operating income and AI-driven demand signal significant long-term potential.
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  • Robust Financials: Alphabet boasts over $100 B in net cash ($118 B cash vs. $14.7 B debt end of 2024) and strong free cash flow, enabling $62 B in 2024 share buybacks and its first-ever dividend. Profitability remains top-tier.
  • Bullish Outlook Tempered by Risks: Analysts maintain a "Buy" consensus with price targets implying upside. However, regulatory challenges (antitrust) and high planned 2025 capital expenditures (~$75 B) temper near-term sentiment.
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