Alphabet Inc.’s 1Q25 earnings beat expectations with $2.81 per share and $90.2 billion in sales, driven by strong cloud segment performance. Google’s cloud segment is a significant profit driver, with a 1,000% increase in operating profits and a projected $150-155 billion in 2025. Google’s robust CAPEX program focuses on AI and cloud, with a $70 billion buyback authorization enhancing investment appeal. Despite a 16.1x P/E ratio, Google’s growth trajectory suggests a potential 25x multiple, implying an intrinsic value near $254.

Alphabet: Valuation Detached From Fundamentals (NASDAQ:GOOG)

Alphabet Inc. reported strong first-quarter earnings in 2025, with earnings per share (EPS) of $2.81 and total sales of $90.2 billion, driven by its cloud segment. The cloud division is a significant profit driver, with a 1,000% increase in operating profits, and is projected to reach $150-155 billion in revenue by 2025. Alphabet's robust capital expenditure (CAPEX) program, focusing on AI and cloud, includes a $70 billion buyback authorization, enhancing its investment appeal. Despite a 16.1x P/E ratio, the company's growth trajectory suggests a potential 25x valuation multiple, implying an intrinsic value near $254 billion.