Alphabet: 18% Off Its High, It's A Buy, Just Not An Easy One (Rating Upgrade)

StockBros Research3.39K FollowersFollow5ShareSavePlay(12min)CommentsSummaryAlphabet earns a cautious Buy, balancing strong AI-driven growth with valuation and CapEx concerns.GOOGL's revenue grew 15.1% in 2025, with Search up 17% and Google Cloud expanding market share to 14%.Gemini and Google Cloud are accelerating, driving upward revisions in revenue and EPS estimates for 2026–2028.Valuation exceeds recent averages; heavy CapEx and weakening momentum temper conviction despite long-term upside potential. 400tmax/iStock Unreleased via Getty Images Alphabet (GOOGL) (GOOG:CA) isn't a market darling these days. The stock is 18% off its February all-time high, and it's also down 10% year-to-date after its huge gains last year. The main reason theThis article was written byStockBros Research3.39K FollowersFollowI prefer to look for GARP (growth at a reasonable price) stocks but also look for opportunities everywhere else. I don't have a specified time horizon. I invest in a stock for as long as my thesis holds true, and I get out when the facts change. In addition, I've developed market-beating algorithms with Python that have helped me find attractive investment opportunities within my own portfolio, and I have been investing since 2016.On top of that, I've worked at TipRanks as an analysis/news writer and even as an editor for a few years, which not only kept me on top of the market but also helped me understand what people are interested in reading. Further, as an editor, I learned to pay attention to detail and found that there's plenty of misinformation and "fluff" out there that needs to be corrected. Thus, my goal is to provide accurate and useful information to the best of my abilities.I was previously associated with Investor's Compass.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in GOOGL over the next 72 hours. 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. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.