"It exhibits robust momentum, and if you decide to invest, you are investing in a company that boasts strong margins, solid cash flow, a low-debt capital structure, and favorable market trends. But is that sufficient? Why Bet On GOOGL Now? The main catalyst for Alphabet is the rapid, high-margin expansion of Google Cloud, driven by enterprises embracing its advanced AI infrastructure (TPUs) and foundational models (Gemini). This sets the stage for a compelling narrative and financial transformation from a mature advertising company to a fast-growing leader in enterprise AI."
"Google Cloud revenue growth accelerated to 48% YoY in Q4 2025, surpassing competitors AWS (24%) and Azure (39%). The backlog for Google Cloud jumped 55% QoQ to $240 billion, giving high visibility into future revenue. The operating margin for Google Cloud grew swiftly from 17.5% to 30.1% YoY, demonstrating that the growth is significantly accretive. How Do The Fundamentals Look? Long-Term Profitability: Approximately 36.6% operating cash flow margin and 30.5% operating margin over the last 3 years."
Alphabet shows robust momentum, strong margins, solid cash flow, and a low-debt capital structure while trading about 9.5% below its 52-week peak. Google Cloud drives the transformation with 48% YoY revenue growth in Q4 2025, a $240 billion backlog after a 55% QoQ jump, and an operating margin rise from 17.5% to 30.1% YoY. Enterprise adoption of TPUs and Gemini foundational models supports high-margin expansion. Company-level metrics include approximately 36.6% operating cash flow margin, a 30.5% operating margin over three years, and around 15.1% LTM revenue growth.
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