TLDR
- GOOGL stock down 2% for 2025 despite 30% recovery from April lows
- Top investor Deep Value Investing maintains “ultra bullish” rating ahead of July 21 earnings
- Google’s partnership with OpenAI as cloud infrastructure provider seen as major catalyst
- Waymo expansion beating Tesla in robotaxi race according to analyst
- Wall Street consensus remains Strong Buy with $205.59 average price target
Alphabet stock has struggled to find its footing in 2025, trading at $185.06 with a modest 0.81% gain in the latest session. The tech giant remains down 2% year-to-date despite a strong 30% recovery from post-Liberation Day lows in April.
The company faces its Q2 2025 earnings report on July 21, with investor attention focused on how artificial intelligence competition affects its core search business. Ad sales remain Alphabet’s primary revenue driver, creating anxiety about potential disruption from large language models.
Deep Value Investing, a top-rated analyst in the top 3% of TipRanks professionals, dismisses these concerns. The 5-star investor expects strong Q2 results with double-digit growth in both earnings per share and revenue.
“I remain bullish going into earnings, as I don’t expect to see a major decline in revenue due to AI,” Deep Value Investing explains. The analyst maintains an “ultra bullish” stance on GOOGL stock.
Google Cloud Gets OpenAI Boost
The recent announcement of Google becoming an OpenAI cloud infrastructure provider has caught investor attention. Deep Value Investing calls this development a “major catalyst” for Alphabet’s future.
This partnership positions Google Cloud Platform to potentially compete more effectively with Microsoft’s Azure. The collaboration represents a strategic win for Alphabet’s cloud division, which continues seeking market share gains.
Google Cloud’s partnership with Lockheed Martin on generative AI projects adds another enterprise customer to its growing roster. These deals demonstrate the platform’s expanding reach in artificial intelligence applications.
The company has also announced the acquisition of cybersecurity firm Wiz. This purchase strengthens Google Cloud’s security offerings for enterprise customers.
Waymo Leads Robotaxi Race
Alphabet’s Waymo division continues expanding its self-driving car service beyond initial markets. Deep Value Investing notes the company is “obliterating Tesla” in the robotaxi market competition.
The autonomous vehicle unit plans expansion to additional cities and international markets. A concrete timeline for international rollout could provide another stock catalyst, according to the analyst.
Waymo’s technology advancement puts pressure on competitors in the autonomous driving space. The service expansion demonstrates Alphabet’s commitment to diversifying revenue streams.
Recent progress reports show increasing ride volumes and expanding service areas. These metrics suggest growing consumer acceptance of the autonomous taxi service.
The company launched Gemini 2.5, described as its most advanced AI model to date. Heavy infrastructure investments continue as Alphabet counters increased competition from rivals.
Current challenges include ongoing regulatory pressure that analysts warn could impact the business model. Class action litigation risks also create uncertainty for shareholders with losses exceeding $100,000.
Wall Street maintains a Strong Buy consensus with 29 Buy ratings and 9 Hold recommendations. The average 12-month price target of $205.59 implies 11% upside potential from current levels.
After-hours trading showed the stock gaining to $186.69 following the regular session close. Market capitalization exceeds $2.25 trillion at current prices.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
