Why Alphabet Stock Could Double By 2030

Core Insights - Alphabet's cloud computing segment, Google Cloud, is a significant growth driver, with Q3 operating income reaching $3.6 billion, an 85% increase year over year, and revenue of $15.2 billion, up 34% year over year [1][4] - The company's aggressive share repurchase strategy has contributed to a substantial increase in earnings per share, which rose over 35% year over year, while shares gained 62% year to date [2][3] - Alphabet's overall revenue growth has accelerated, with a 14% increase in Q2 2025 and a 16% increase in Q3 2025, alongside a net income of $35.0 billion in Q3 [3][4] Financial Performance - The combination of Google Cloud and Alphabet's core advertising business positions the company for significant future growth, potentially doubling its stock price by 2030 [4][10] - To achieve a stock price of approximately $614 by 2030, annualized earnings per share would need to reach around $24.60, implying a doubling of current earnings per share [7][8] - The company anticipates capital expenditures between $91 billion and $93 billion in 2025, which may pressure free cash flow in the short term [6] Growth Potential - Continued revenue growth at similar rates and controlled expense increases are essential for achieving the projected earnings growth [8] - The increasing role of AI in Alphabet's business enhances the plausibility of these growth assumptions [9] - If investments in cloud computing and AI yield faster revenue growth and margin expansion, the stock could potentially double [10]