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Posted by
Two Blokes Apr 27 -
Filed in
Stock
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2 views
Alphabet's Q1 2025 earnings were strong, showing Google is safe from AI disruption. However, I maintain a HOLD rating due to lack of diversification and potential recession risks. Valuation appears reasonable with a P/E of 17 vs. a historical median of 22.5, projecting a potential $220+ share price at a 21.5x forward P/E. I think Alphabet's revenue relies too much on advertising (~75%), with promising but limited diversification from Cloud (28% growth) and Subscriptions/Platforms (18% growth).
