Alphabet Inc (NASDAQ:GOOGL), the parent company of Google, is on the verge of releasing its second quarter fiscal year 2025 results. With a share price of around $190, a market capitalization of over $1.87 trillion, and strong technical growth in recent weeks, investors are focusing primarily on the performance of its advertising division, cloud services, and advances in artificial intelligence.
1. Expectations for Q2 2025 Results
The results are scheduled to be released on July 23, 2025. Investors and analysts are primarily watching the performance of these key segments:
– Google Search and YouTube: the main source of revenue (advertising),
– Google Cloud: a competitive platform to AWS and Azure,
– AI infrastructure spending: budget for AI between $64-75 billion this year.
According to Jefferies, positive developments in these areas may lead to a short-term growth of the stock by another 5-10%.
2. Strategic Challenges and Risks
Although the outlook remains positive, there are factors that may slow the stock’s development:
– Regulatory pressures: the DOJ is considering antitrust action against Alphabet, including a possible split of the search engine and Chrome browser.
– AI competition: the rapid emergence of generative AI (e.g. OpenAI, Meta, Amazon) is changing advertising markets and threatens to erode margins.
– Macroeconomic environment: fluctuations in global ad spend and possible slowdown in consumer activity.
3. Summary and Investment Outlook
Alphabet continues to be a strong growth title with a diversified portfolio and robust investments in artificial intelligence. If the company delivers the expected results, a move above $200 can be expected in the short term. Longer term, Alphabet stock appears to be a good candidate for growth-oriented investors with a horizon of 6-12 months.
The company also pays a regular quarterly dividend to investors. The dividend yield is 0.48 p.a. The actual dividend amount is USD 0.21 per share. The average target price for the stock for the short to intermediate term investment horizon was set by analysts at zacks.com at $200.76 per share.
