Alphabet continues its growth trajectory with strong momentum across cloud, advertising, and AI. Revenue is expected to rise from $340 billion in 2023 to $470 billion by 2027 (+8.5% annually), while net income could reach $130 billion (+12% annually), with a net margin around 27%. ROE exceeds 30%, and free cash flow remains massive — over $110 billion as early as 2026. The group benefits from technological leverage and increasing diversification (Google Cloud, YouTube, Gemini, Pixel).
Valuation remains reasonable for a growth mega-cap: 2025 P/E at 20x, EV/EBITDA at 14x, P/B at 6x. The FCF yield exceeds 5%, reflecting exceptional self-financing capacity. Alphabet trades at a moderate premium, justified by its tech leadership, advertising resilience, and ability to integrate AI across all business lines. The dividend remains marginal, but share buybacks are large and consistent.
From a technical standpoint, after a 42% correction between February and April 7 and a rebound from a $141 base, the stock recovered over 161.8% ($246), reaching a record high of $255 at the top of an ascending channel that has reflected a 27% annual average gain over the past three years. After two weeks of consolidation, the stock has returned to a support level at $239, offering a potential re-entry point. The key threshold at $246 may trigger some hesitation — even more so at $256 — but momentum remains strong. A pullback to $224 seems unlikely unless support breaks.
The consensus is positive (Buy), with an average target of $260 (+8%), a high target of $290 (+18%), and a low target of $230 (-10%). MSCI’s ESG rating is AAA, and fundamental scores confirm the model’s strength: profitability, visibility, balance sheet quality, and cash generation are all rated high.
Fundamental data extracted and refined from ZoneBourse.
