Is Alphabet a Buy?
Google parent Alphabet is one of the largest and most successful companies in the world. Its primary subsidiary, Google, has long enjoyed a stranglehold on the search engine industry and is so ingrained in modern day life that its name has become a verb.
But is Alphabet a buy? In this article, we will take a look at the company, examine whether Alphabet is a buy or sell, demonstrate how to invest in Google and much more!
The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.
Is Alphabet a Buy?
The advent of Artificial Intelligence (AI) has prompted fears in some quarters that the new technology may hurt Alphabet. The concern is that Google, Alphabet’s main source of revenue, will lose search users to AI services such as ChatGPT.
Are these concerns well-founded? Is Alphabet a buy? In the following sections, we will take a look at some of the current reasons for investing in Google parent Alphabet.
Google Search Continues to Grow
As stated previously, there is a concern that the rise of new AI services will draw users away from Google Search.
Although, Alphabet is much more than just Google, there’s no escaping the fact that Google Search is the most important part of its business. If Google Search loses its dominance, it could impact Alphabet’s bottom line significantly.
However, more than two years since ChatGPT was launched and caught the world’s attention, you won’t find any evidence of a Google slowdown in Alphabet’s results.
In fact, revenue generated by this part of the business continues to record strong growth. In the second quarter of 2025, Google Search revenue rose more than 11%. There’s even evidence that AI may be helping drive engagement.
Google has integrated AI Overviews into its traditional search offerings, and it has quickly become a popular feature. In its second quarter earnings call, management revealed that AI Overviews had more than 2 billion monthly users.
AI May Be a Tailwind
Whilst AI may indeed threaten Google Search, it shouldn’t be overlooked that Alphabet also has a horse in this race.
Its AI Overviews are powered by Alphabet’s own chatbot tool, Gemini, which is developed by Google DeepMind.
Alphabet CEO Sundar Pichai noted in the company’s Q2 earnings call that nine million developers had built using Gemini and that the Gemini app has more than 450 million monthly active users.
YouTube Streaming Strength
As well as Google, Alphabet also owns YouTube. Whilst YouTube may contribute less to Alphabet’s total revenue, it remains a key part of its business.
In the US, YouTube is the most watched streaming platform and accounted for 12.8% of total US television viewing time in June 2025. For reference, in the same period, streaming giant Netflix accounted for 8.3% of total viewing time.
In Q2 2025, revenue from YouTube advertising grew by 13%. As well as advertising, YouTube also generates revenue through its subscription service, although Alphabet does not report specific figures for this revenue stream.
The Cloud
Amazon Web Services and Microsoft’s Azure dominate the global cloud market, accounting for more than 50% between them.
Alphabet’s cloud offering, Google Cloud, ranks third in the market, with a share of 12%.
Nevertheless, this is a market which is growing rapidly as AI drives surging cloud computing demand and Google Cloud is benefiting from this.
Whilst cloud revenue remains a small piece of Alphabet’s total revenue, it’s growing quickly. Strong demand for AI infrastructure and services helped revenue jump 32% in the second quarter of 2025.
Perhaps more impressive than the segment’s revenue bump is its improving operating margin, which measures operating income as a percentage of revenue.
In Q2, Google Cloud’s operating margin was 21%, considerably higher than its margin of 11.3% a year before.
The Risks of Buying Alphabet Shares
As with any investment, investing in Alphabet carries significant risk. Whilst there may be several reasons to invest in the tech giant, there are also important factors to consider before deciding to do so.
Could AI Disrupt Search Dominance?
We’ve already noted that there is concern that AI will change the way people search for information which could negatively impact Alphabet’s core business.
Whilst Google Search revenues are continuing to climb for now, that doesn't mean that AI doesn’t pose a risk for the future of this segment. This is certainly something to bear in mind.
Furthermore, although Alphabet has its own AI chatbot, Gemini, it faces stiff competition from the likes of OpenAI’s ChatGPT, which is reportedly set to hit 700 million weekly active users.
Ongoing Antitrust Cases
Another serious risk to Alphabet is the ongoing antitrust cases it faces.
In 2024, a US judge ruled that Google had illegally maintained a monopoly over its online search business. More recently, another judge ruled it had a monopoly in online advertising technology.
There is yet to be a ruling on how Alphabet should be punished for maintaining its monopoly. One possibility, which the US government has argued in favour of, is that Alphabet could be forced to break up.
Alphabet Share Price Forecast
So, what do the analysts currently say about buying shares in Google?
According to 35 analysts, polled by TipRanks, offering a 12-month Alphabet stock forecast over the past 3 months:
- Buy Ratings: 26
- Hold Ratings: 9
- Sell Ratings: 0
- Average Price Target: $216.48
- High Price Target: $240.00
- Low Price Target: $187.00
How to Invest in Google
If you’re interested in investing in Google, you can follow these steps in order to buy Alphabet shares:
- Register for an Invest.MT5 account and log in to the Dashboard.
- Click ‘Invest’ next to your account details to open the Admiral Markets Platform.
- Search for Alphabet shares and click the symbol to open the instrument page.
- Enter the number of shares you wish to purchase and click ‘Place order’ to invest!
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Frequently Asked Questions
When did Google go public?
Google went public on 19 August 2004 via an Initial Public Offering (IPO) at an initial price of $85 per share.
Does Google pay dividends?
Yes, Alphabet currently pays dividends on a quarterly basis. However, please note that future dividends are never guaranteed.
When did Google start paying dividends?
Google parent Alphabet paid its first ever quarterly dividend in June 2024.
What is the difference between GOOG and GOOGL?
GOOG and GOOGL are the ticker symbols for the different classes of Alphabet shares. The difference between the two share classes come down to voting rights. Whilst Alphabet Class A shares (GOOGL) come with voting rights in the form of one-share-one-vote, Alphabet Class C shares (GOOG) do not have voting rights.
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