Is GOOGL a good stock to buy? We came across a bullish thesis on Alphabet Inc. on Compounding Your Wealth’s Substack by Sergey. In this article, we will summarize the bulls’ thesis on GOOGL. Alphabet Inc.’s share was trading at $298.48 as of March 6th. GOOGL’s trailing and forward P/E were 27.62 and 26.11 respectively according to Yahoo Finance.
Alphabet Inc. offers various products and platforms in the United States and internationally. It operates through Google Services, Google Cloud, and Other Bets segments. GOOGL reported strong financial results for the fourth quarter of 2025, highlighting accelerating growth driven by artificial intelligence and cloud computing. The company generated $113.8 billion in quarterly revenue, representing 18% year-over-year growth and exceeding expectations, while earnings per share reached $2.82, also beating estimates.
Net margin expanded to 30.3%, reflecting strong operating leverage despite heavy AI-related investments. For the full year, Alphabet reported $403 billion in revenue, up 15% year over year, and generated $73.3 billion in free cash flow, underscoring its ability to fund large-scale AI and infrastructure investments internally.
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Growth was supported primarily by the company’s core segments. Google Search remained the largest contributor with $63.1 billion in revenue, growing 16.7% year over year as new AI-powered features such as AI Mode and AI Overviews improved query understanding and monetization.
Meanwhile, Google Cloud delivered one of the strongest performances across the company, with revenue increasing 47.8% year over year to $17.7 billion and operating margin reaching 30.1%. Strong enterprise demand for AI infrastructure, supported by proprietary TPUs, NVIDIA GPUs, and Gemini-based platforms, drove rapid customer adoption, with the number of billion-dollar contracts signed in 2025 exceeding the previous three years combined.
Artificial intelligence also emerged as a central growth driver across Alphabet’s ecosystem. Gemini became the company’s core AI platform, reaching 750 million monthly active users and gaining rapid enterprise adoption with over 120,000 organizations using the platform. YouTube continued to expand its ecosystem as well, surpassing $60 billion in annual revenue while subscriptions grew faster than advertising, supported by AI-powered creator tools and rising engagement on Shorts.
