Yahoo Financeยท2025-09-30 14:43Core Thesis - Rebound Capital presents a bullish thesis on Alphabet Inc., highlighting its resilience and growth potential despite market concerns [1][6] Financial Performance - As of September 25th, Alphabet's share price was $246.57, with trailing and forward P/E ratios of 26.29 and 23.36 respectively [1] - The stock has rebounded 60% since earlier 2025, driven by strong fundamentals, including growth in ad revenues and profits [2] - The company's stock price has appreciated approximately 51.8% since a previous bullish coverage in April 2025 [5] Business Segments - Alphabet's search business generates over 70% of operating profit with more than 90% market share, while YouTube has 2.7 billion monthly active users and over 100 million premium subscribers [3] - Google Cloud is a $50 billion run-rate business expected to double within five years, and subscriptions provide $45 billion in recurring revenue [3] - Alphabet's AI ecosystem is supported by hardware (TPUs), foundation models (Gemini), and extensive reach through its platforms [3] Market Position and Valuation - Rebound Capital values Alphabet at $300 per share, indicating a 25% upside potential compared to current trading levels [4] - Alphabet is recognized as one of the 30 Most Popular Stocks Among Hedge Funds, with 219 hedge fund portfolios holding GOOG at the end of Q2 [7] Risks and Challenges - Rising capital expenditures are projected at $85 billion for 2025, and there is potential for share loss in search to competitors like OpenAI [4]