Summary
- Alphabet delivered record Q4 2025 results with 18% revenue growth and 31% EPS growth, surpassing expectations.
- GOOGL’s core segments—Search, YouTube, and Cloud—showed robust expansion, with Cloud revenues up 48% and margins rising to 30%.
- The market reacted negatively to $175–$185B 2026 CapEx guidance, but I view this as a strategic investment strengthening GOOGL’s AI-driven competitive moat.
- I see the sell-off as a long-term buying opportunity, given GOOGL’s strong fundamentals, accelerating AI monetization, and prudent capital allocation.
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Thesis
Yet another, yet another quarter to put into a frame. Nothing to be said. Every quarter I rip my hair out, and I say, “Wow!” How are they able to make these kinds of numbers? I have no idea how they do it, but it
Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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