GOOG Stock Is Dirt Cheap Right Now (And Wall Street Knows It) - Here’s What I’m Doing

I've been keeping an eye on Alphabet ($GOOG) for a while now. After digging into their recent earnings and the pace they’re moving with AI, I decided to start building a position. I'm focused on long-term growth, and Alphabet’s current setup looks hard to ignore.

If you’ve read my breakdown on Amazon, you know I prefer businesses with strong cash flow and optionality. $GOOG checks both.

As of April 2025, here’s what stood out:

• Price: ~$162
• P/E: 16.9
• PEG: 0.54
• EPS growth (3-year CAGR): 31.6%
• Free Cash Flow (2024): $72.8B
• Return on Equity: 34.8%

Compared to other tech giants like $MSFT and $AMZN, this is a company that’s both profitable and growing at scale — but without the premium valuation.

For context on how valuation metrics like these work, here’s a simple breakdown on P/E ratios.

One word: AI.

Alphabet’s Gemini 2.5 model is now deeply integrated into Google Search, YouTube, Android, and Cloud. Their AI Overviews are already used by over 1.5 billion people every month.

They’ve committed $75B in 2025 toward AI infrastructure. That’s not R&D fluff — that’s scaled investment into the future of their core business.

This is the same kind of embedded AI flywheel I discussed in Broadcom’s 10x AI thesis.

Wall Street isn’t hyping it up — but they’re quietly positive:

• Consensus: Moderate Buy
• Price targets: $199–$203
• Recent raises: Citi, UBS, BoA

Management is backing it up too:

• $70B share repurchase program announced
• Dividend increased
• Clear guidance on integrating AI across the board

It’s not risk-free. Here’s what I’m tracking:

• Antitrust cases in the U.S. and EU (potential for forced break-up of Chrome or ad business)
• AI competition heating up (OpenAI, $MSFT Copilot, DeepSeek, etc.)
• Ongoing margin pressure due to legal + AI infrastructure costs

That said, Alphabet’s fundamentals allow it to absorb some of this while still investing in growth.

From a fundamentals standpoint, yes. Alphabet is a strong example of what I look for:

• High Return on Equity (explained here)
• Long runway for AI integration
• Strong monetization across multiple platforms
• Valuation that still gives upside

If you like tracking your portfolio across platforms, I’d recommend trying Personal Capital — makes this stuff way easier to manage.

There’s no guarantee — but the setup is there.

They’re not just reacting to AI trends. They’re shaping them. Combine that with a massive installed user base and unmatched data scale, and I think $GOOG has the potential to outperform over the next few years.

For reference, I felt similarly about Nvidia a while back, and that turned out alright.

I’m in — but not going all-in just yet. Here’s what I’ll monitor:

• Gemini monetization (especially in Search and Cloud)
• Any changes coming from DOJ or EU lawsuits
• Cloud segment margins and revenue growth
• Insider selling trends after the buyback program

$GOOG in 2025 feels like one of those “quiet compounders”

• Strong balance sheet
• Real AI upside
• Still reasonably priced

I’ve started my position and will look to add on dips.

If you’re into long-term growth investing, this is one to keep on your radar.

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