The Motley Fool·1d ago
Alphabet vs. Amazon: Which Anthropic Backer Will Benefit More From the $2 Trillion IPO?Amazon owns a larger stake in Anthropic. Both Amazon and Alphabet supply computing power to the AI company.
Alphabet's revenue growth accelerated to 24.2% YoY in Q2 2026, driven by a 82% surge in Google Cloud, while gross margins expanded to 61.6% from 59.5% a year earlier. However, the AI infrastructure buildout has driven capex to 37.5% of revenue, causing free ca...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth accelerated to 24.2% YoY in Q2 2026, with gross margin expanding to 61.6% and operating margin to 34.0%, though net margin of 93.7% was inflated by a one-time gain.
Google Cloud revenue grew 63% year-over-year in Q1 2026, with a backlog exceeding $460 billion, indicating strong future revenue visibility.
Alphabet's full-stack AI approach is effectively monetizing AI investments, with unprecedented demand for its AI chips (TPUs).
Google Search revenue increased by 19% in Q1 2026, indicating strength in the core advertising business despite AI disruptions.
Alphabet's CapEx guidance for 2026 is projected between $175 billion and $190 billion, raising concerns about future cash flow.
Competition from AI-powered alternatives and potential shifts in partnerships could significantly impact Google's ad revenue.
Ongoing antitrust litigation and a $3.5 billion fine in Europe pose significant risks to Google's financial performance.
Trailing total returns as of 9/24/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Jul 22, 2026 | $9.11+217.4% vs $2.87 | $119.8B+2.8% vs $116.5B |
Q2 2026 Apr 29, 2026 | $5.11+93.6% vs $2.64 | $109.9B+2.7% vs $107.0B |
Q1 2026 Feb 4, 2026 | $2.82+9.7% vs $2.57 | $113.8B+2.2% vs $111.3B |
Q4 2025 Oct 29, 2025 | $2.87+24.8% vs $2.30 | $102.3B+2.4% vs $99.9B |
Amazon owns a larger stake in Anthropic. Both Amazon and Alphabet supply computing power to the AI company.
Alphabet (GOOGL) stock fell 3% on Wednesday as a broader selloff hit technology companies facing growing competition from Meta Platforms' rapidly expanding Muse AI assistant. The move comes after Meta shares jumped 11% on Monday as Muse climbed to the top of Apple's US App Store.
Alphabet has quietly built one of the most compelling AI growth stories among mega-cap stocks, but the real question is how much a $5,000 stake today could compound through 2031 across three very different scenarios.
Big Tech is splitting along a single axis in Wednesday afternoon trading.
Benchmark GOOGL against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Alphabet Inc. (GOOGL)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $337.83 | $4.09T | 31.25 | 15.13% | 32.8% | 35.7% | 0.24% | |
| $744.10 | $1.89T | 31.68 | 22.17% | 29.84% | 29.73% | — | |
| $500.59 | $3.72T | 27.89 | 17.79% | 40.31% | 33.22% | — | |
| $249.27 | $2.68T | 34.77 | 12.38% | 17.44% | 30.5% | — | |
| $337.02 | $4.95T | 45.18 | 6.43% | 27.62% | 137.18% | — | |
| $89.78 | $30.54B | 51.29 | -3.04% | -2.9% | -1.61% | — |
Alphabet Inc. (GOOGL) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Alphabet Inc. (GOOGL) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 10, 2026·SEC
Jul 22, 2026·SEC
Jun 11, 2026·SEC
Feb 5, 2026·SEC
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Alphabet Inc. (GOOGL) stock FAQ — growth, dividends, profitability & financials explained
Alphabet Inc. (GOOGL) reported $445.87B in revenue for fiscal year 2025. This represents a 101347% increase from $439.5M in 2002.
Alphabet Inc. (GOOGL) grew revenue by 15.1% over the past year. This is strong growth.
Yes, Alphabet Inc. (GOOGL) is profitable, generating $244.21B in net income for fiscal year 2025 (32.8% net margin).
Yes, Alphabet Inc. (GOOGL) pays a dividend with a yield of 0.24%. This makes it attractive for income-focused investors.
Alphabet Inc. (GOOGL) has a return on equity (ROE) of 35.7%. This is excellent, indicating efficient use of shareholder capital.
Alphabet Inc. (GOOGL) generated $53.27B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
