3 Catalysts To Watch Out For Google Stock

Core Insights - Google stock (Alphabet) has shown significant rallies, achieving over 30% gains in less than two months multiple times, particularly in 2010 and 2024, with two instances of over 50% rallies in 2025, indicating potential for considerable upside for investors [2] Catalyst Summaries - Catalyst 1: Cloud AI Backlog Converting to Revenue and Margin Expansion - Google Cloud is expected to accelerate revenue growth beyond consensus estimates of 30%+, with operating margins projected to rise toward 30% from 23.7%. The cloud backlog increased by 46% sequentially to $155 billion in Q3 2025, and operating income soared 85% year-over-year [9][10] - Catalyst 2: Gemini-Driven Monetization in Core Services - The Gemini app has exceeded 650 million monthly active users, with search queries tripling in a quarter. New revenue sources are anticipated from premium AI features in Search and Workspace, enhancing user engagement and ad pricing power [9][10] - Catalyst 3: Expansion of Aggressive Capital Return Program - There is a significant increase in buyback authorization or dividends expected, which will boost EPS growth and attract new investors. The trailing twelve months free cash flow reached $73.6 billion, and a recent dividend program initiation indicates a shift in capital allocation strategy [9][10] Financial Performance - Revenue growth for Alphabet is reported at 13.4% for the last twelve months, with a three-year average of 11.0%. The company has a free cash flow margin of nearly 19.1% and an operating margin of 32.2% for the last twelve months. The stock trades at a P/E multiple of 32.4 [10]