Alphabet Rises 11% in a Month: Buy, Sell or Hold the GOOGL Stock?

Core Insights - Alphabet (GOOGL) shares have increased by 11.3% in the past month, significantly outperforming the Zacks Computer & Technology sector's 3.8% growth, driven by strong Q2 2025 results highlighting AI integration in Search and a surge in Google Cloud revenues [1][10]. Financial Performance - In Q2 2025, Google Search and other revenues rose by 11.7% year over year to $54.19 billion, exceeding the Zacks Consensus Estimate by 3.04%, and represented 56.2% of total revenues [2][10]. - Google Cloud revenues increased by 31.7% year over year to $13.62 billion, surpassing the Zacks Consensus Estimate by 4.24%, and accounted for 14.1% of total revenues [4][10]. Market Position - Google maintains a dominant position in the Search market, handling over 5 trillion queries annually, with a market share of 89.66%, far ahead of Microsoft's Bing at 3.88% [3][10]. - In the cloud computing sector, Google Cloud holds a 20% market share, trailing behind Amazon Web Services at 30% and ahead of Microsoft's 13% [5]. AI Integration and User Engagement - AI Overviews now reach over 2 billion users monthly, available in over 200 countries and 40 languages, driving a 10% increase in global queries [12][10]. - The introduction of AI Mode has led to users generating queries twice as long as traditional searches, with over 100 million monthly active users in the U.S. and India [13][10]. Partnerships and Client Growth - Google Cloud's growth is bolstered by partnerships with companies like NVIDIA and PayPal, enhancing its AI capabilities and expanding its service offerings [14][10]. - The number of deals exceeding $250 million doubled year over year, with new Google Cloud Platform customers increasing by nearly 28% sequentially in Q2 2025 [15]. Earnings Estimates - The Zacks Consensus Estimate for Q3 2025 earnings is $2.32 per share, reflecting a 6.4% increase over the past 30 days, indicating a year-over-year growth of 9.43% [16]. - The consensus for 2025 earnings is projected at $9.94 per share, up 4% over the past 30 days, suggesting a 23.6% increase compared to 2024 [17]. Valuation Metrics - Alphabet's stock is trading at a forward Price/Sales ratio of 6.64X, higher than the Zacks Internet Services industry's 5.38X and Amazon's 3.18X, but lower than Microsoft's 12X [19].