--- title: "GOOGL (Updated May-21-25)" author: "DeepValues Research" publisher: "DeepValues Research (DeepValues / LuLu Ventures LLC)" type: "Research article" ticker: "GOOGL" company: "Alphabet" sector: "Communication Services" industry: "Internet Content & Information" wikidata: "https://www.wikidata.org/wiki/Q20800404" wikipedia: "https://en.wikipedia.org/wiki/Alphabet_Inc." date: "2026-02-19" language: "en" section: "Company Research" answer: "DeepValues Research published “GOOGL (Updated May-21-25)” on Alphabet (GOOGL) on Feb 19, 2026. This report is compiled from publicly‑available sources believed to be reliable, including Alphabet's SEC filings, earnings releases and third‑party databases." canonical_url: "https://research.deepvalues.ai/company/googl/googl-updated-may-21-25/" markdown_url: "https://research.deepvalues.ai/company/googl/googl-updated-may-21-25/index.md" license: "CC BY 4.0" license_url: "https://creativecommons.org/licenses/by/4.0/" cite_as: "DeepValues Research, GOOGL (Updated May-21-25), https://research.deepvalues.ai/company/googl/googl-updated-may-21-25/" publisher_url: "https://deepvalues.ai" app: "https://deepvalues.ai" api: "https://app.deepvalues.ai/developers" data_note: "Reports are dated snapshots. Current data via the DeepValues API: https://app.deepvalues.ai/developers" disclaimer: "Educational research, not investment advice." --- **Financial Disclaimer (please read first)** This report is compiled from publicly‑available sources believed to be reliable, including Alphabet's SEC filings, earnings releases and third‑party databases. Figures are stated in USD; "$ B" denotes billions. All forward‑looking estimates (e.g., the Buffett‑style DCF) are illustrative and not a recommendation to buy or sell securities. Verify data independently and consult a licensed adviser before acting on it. Past performance is not indicative of future results. ### **Background Research** | **Topic** | **Highlights** | **Key Sources** | |-----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------| | **Business model & income mix** | Alphabet is a holding company. Google Services (Search, YouTube, Android, Chrome, Maps, Play, Pixel devices) still generates \~**80 % of revenue via advertising**; Google Cloud contributes \~14 %; "Other Bets" (Waymo, Verily, Intrinsic, Isomorphic Labs, Wing, etc.) contribute <1 %. Alphabet also earns subscription/platform/device revenue (YouTube Premium/TV, Google One, Pixel hardware). | 10‑K & Q1 2025 release | | **Customers / scale** | \~4.3 B monthly active users on core Google products; >1.5 B people now see AI Overviews; >270 M paid consumer subscriptions; Cloud has "tens of thousands" of enterprise customers. | Q1 2025 release, I/O disclosures | | **Units sold / subs** | Pixel phones (\~10 M units 2024); Nest & Chromecast devices (\~16 M); Google One >150 M subs; YouTube Premium/TV >120 M subs. | Company blog, 10‑K | | **Short‑term headwinds** | Macro ad‑spend swings, FX volatility, regulatory scrutiny (EU DMA, US & EU antitrust trials), Apple search‑deal renegotiation, rising AI cap‑ex ($75 B guidance '25). | Reuters, 10‑Q | | **Long‑term risks** | Generative‑AI substitution of search ads, privacy‑driven signal loss, cloud‑price competition (AWS / Azure), hardware commoditisation, autonomous‑vehicle regulatory hurdles. | Reuters, 10‑K | | **Cost structure** | • **Fixed:** datacenter depreciation, network ops, R&D (21 % of revenue). | | | • **Variable:** TAC (\~15 % of Search & Network ads), YouTube content‑acquisition, marketing. | | | | TAC and content costs are the largest and rise with mobile mix and premium video. | 10‑K, earnings calls | | | **Management** | Chair John Hennessy; CEO Sundar Pichai; Pres./CIO Ruth Porat; CFO Anat Ashkenazi. Founders Page & Brin remain directors controlling >51 % voting power via Class B shares. | proxy statement | | **Governance & alignment** | Founders each keep ≈ 3 % economic / 27 % voting; exec pay is >70 % stock‑based; insiders have historically bought during dips (e.g., 2022 split‑adjusted $84-$89). | SEC filings | | **Top shareholders** | Vanguard 7.5 %, BlackRock 6.6 %, State Street 3.3 %. Votes typically align with management; most 2024 proposals on climate disclosures and AI ethics failed with <25 % support. | Yahoo Finance holders page | | **Share‑buyback** | April 2025 board authorisation of an **additional $70 B** (fifth consecutive year). 2024 net repurchases $61 B vs avg $48 B past decade. | Q1 2025 release | | **Value‑investor activity** | Oakmark's Bill Nygren re‑established a 3 % position in late‑2024 (avg cost ≈ $135). Stanley Druckenmiller's Duquesne exited in Q1 2025. Few traditional "Buffett‑style" funds hold >5 %. | Barron's, MarketWatch | | **Latest quarter (Q1 2025)** | Revenue $90.2 B (+12 % y/y), Cloud +28 %, EPS $2.81 (+49 %), op‑margin 34 %. 1st cash dividend raised to $0.21. Employees 185,719. | earnings release | ### **Financial Research** (live price & market cap widget) The interactive table and time‑series charts for the 15 requested metrics are available just above this text (scroll up). Highlights: - **Steady top‑line CAGR 2015‑24 ≈ 17 %**; rebound in 2023‑24 after ad‑slow‑down year 2022. - **Net‑margin** widened from 21 % (2015) to 29 % (2024) thanks to AI‑driven Search monetisation and Cloud scale. - **ROIC** has accelerated to mid‑30 % as capital‑efficient Cloud margin inflects. - **Balance‑sheet** remains fortress‑like: cash $95.7 B vs long‑term debt $10.9 B (D/E 0.39). - **Valuation**: trailing P/E \~ 18.6; P/FCF \~ 23; both near 10‑yr averages despite structurally higher Cloud mix. #### **Buffett‑style Intrinsic Value** - Assumptions: - starting FCF $72.764 B (2024) - growth 8 % for yrs 1‑10 (below 10‑yr low) - terminal growth 2.5 % - discount 10 % - shares 13.313 B Python output ⇒ **fair value ≈ $112 / share** (️\~33 % below today's \~$167). With a **30 % margin‑of‑safety**, an attractive entry would be **≈ $78**. To earn the market price today, an investor would accept an implied IRR near **7.6 %** (solving for discount rate). ### **Interpretation** Alphabet's dual‑engine of **high‑margin ad cash flows** and a rapidly scaling **Google Cloud** continues to compound free cash at >20 % despite gargantuan AI cap‑ex. The stock trades at a modest premium to the S&P 500 on P/E but with superior ROIC, cash cushion and optionality (Gemini, Waymo, health‑tech). Key watch‑items: - **Regulatory outcomes** (US antitrust remedies, EU DMA fines). - **AI cannibalisation risk**-will AI Overviews erode or amplify search monetisation? - **Cap‑ex discipline** as $75 B AI build‑out ramps. - **Cloud price wars** vs Azure/AWS. For long‑term, value‑oriented investors the shares are **not yet in bargain territory** by strict Buffett metrics, but remain a high‑quality compounder likely to earn mid‑teens total returns if ROIC stays above 25 % and buybacks persist. **Financial Disclaimer (end)** The analysis above expresses views as of May 21 2025 and may change without notice. It is educational only and **not** investment advice. Verify data with primary sources and consult a qualified adviser.