We came across a bullish thesis on Alphabet Inc. on Accrued Interest’s Substack by Simeon McMillan. In this article, we will summarize the bulls’ thesis on GOOGL. Alphabet Inc.’s share was trading at $201.57 as of August 19th. GOOGL’s trailing and forward P/E were 21.49 and 20.92 respectively according to Yahoo Finance.
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Google delivered a strong Q2-25 earnings report, exceeding expectations and reinforcing its position as a top “value” stock within big tech. Management emphasized resilience in core search, countering concerns that competitors like ChatGPT are eroding market share. The integration of AI Overviews highlights Google’s adaptability, while ongoing strength in search advertising confirms no visible impact from AI disruptors.
YouTube continues to be a growth engine, with Shorts now monetizing at parity with traditional in-stream content in the U.S., easing investor fears of cannibalization and supporting global monetization prospects. Advertising growth accelerated to +13% in Q2, reflecting YouTube’s dominance in global entertainment and its rising share of connected TV viewership, which recently hit a U.S. record per Nielsen data.
Google also spotlighted AI’s role in expanding its addressable market beyond text-based queries to include video, images, and real-world data, deepening long-term growth potential across its ecosystem. Waymo remains another underappreciated asset, with expanding city coverage and technology execution widely seen as ahead of Tesla, creating potential synergies with Uber. Despite investor hesitation on higher capital expenditures, management framed increased AI infrastructure investment as a strategic advantage, building out the entire tech stack rather than focusing narrowly on talent costs like Meta.
Shares rose ~1% after earnings and remain up about +15% over the past month. With YouTube and search showing durable growth, AI broadening monetization, and long-term optionality in Waymo, Google’s undervalued multiple offers investors both resilience and upside. The stock remains a compelling buy, particularly on pullbacks.
Previously, we covered a bullish thesis on Alphabet Inc. (GOOGL) by FluentInQuality in May 2025, which highlighted Alphabet’s dominance in digital distribution, AI leadership, and diversified growth drivers. The stock has appreciated ~27% since our coverage as the thesis played out through stronger earnings and AI integration. Simeon McMillan shares a similar view but emphasizes near-term catalysts from Q2-25 earnings, advertising resilience, and YouTube Shorts monetization.
