Prediction: Alphabet Stock Could Soar to This Price by 2030

Core Idea - Alphabet's stock presents a meaningful upside potential driven by strong fundamentals and aggressive investments in AI and cloud infrastructure [2][10] Financial Performance - In Q2 2025, Alphabet's revenue increased by 14% to $96.4 billion, with an operating margin of 32.4% [5] - Google Cloud revenue surged by 32% to $13.6 billion, with operating income rising to $2.8 billion from $1.2 billion year-over-year, indicating strong demand for AI-related infrastructure [5] Investment Strategy - Alphabet's capital expenditures in Q2 reached $22.4 billion, with a raised capital spending plan of approximately $85 billion for 2025, aimed at sustaining double-digit revenue growth [6] - The company returned $13.6 billion to shareholders through stock repurchases and maintains a quarterly dividend of $0.21, reflecting a commitment to shareholder value [7] Earnings Forecast - Projected earnings per share (EPS) for 2030 is approximately $16.5, based on a 12% annual revenue growth and stable operating margins, leading to a target share price of around $415 using a 25 price-to-earnings ratio [8][10] Market Considerations - Recent earnings were positively impacted by investment gains, contributing about $0.85 to EPS, but this line item is subject to fluctuations [9] - Potential risks include increasing traffic acquisition costs, regulatory challenges, and competition in the AI space, which could affect growth forecasts [9]