Alphabet Inc.

GOOGL | NASDAQ

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$349.54

+$2.21 (+0.64%)

At close: Sep 18, 2026, 4:00 PM ET

$350.61

+$1.07 (+0.31%)

Pre-market: Sep 21, 2026, 8:10 AM ET

Overview Rating Statistics Financials Earnings Analysts Ownership Dividends Profile

Rating

Updated: Sep 17, 2026

78.6

Fundamentals Excellent

Market Sentiment Neutral

Moat Wide

Fundamentals

71/85

valuation

Undervalued 19/25

growth

High 15/20

quality

High 25/25

health

Fortress 12/15

Rating Excellent

Sentiment

7.6/15

7.6

Neutral

RSI: 45

Market sentiment is neutral to cautiously constructive with momentum cooling. RSI near 45 signals consolidation without oversold pressure, while news flow leans modestly positive around AI breakthroughs, Cloud leverage, and analyst reassurance, offset by focus on Cloud scale gap versus Azure and autonomous competition. Smart-money is divided: broad super-investor trimming with 33 reduces versus 12 adds indicates institutional profit-taking after strength, insider activity is neutral, while Congressional activity skews positive, suggesting policy-level confidence contrasting with professional caution.

Moat

Wide

Network Effects Property and Secrets Capital Intensive

Alphabet's Wide moat rests on a self-reinforcing two-sided Network Effects flywheel across Search, YouTube, Android, Chrome, Maps and Play, where more users attract more advertisers and creators, generating more data that improves relevance and targeting. This is protected by Property and Secrets including proprietary search ranking, ads auction technology, Gemini AI models, TPUs and global data infrastructure, plus a Capital Intensive barrier of hyperscale data centers that competitors cannot easily replicate. Durability is validated quantitatively by 15.14% ROIC with 60.9% gross margin and 33.12% operating margin, demonstrating structural pricing power and scale economics.

Bull Case

• AI monetization cycle across Search, YouTube, and Google Cloud with Gemini integration, AI Overviews, and enterprise Cloud demand providing operating leverage on 60.9% gross margin and 33.12% operating margin base.
• Significant valuation discount with trailing P/E of 16.99 and PEG of 0.15 alongside 33.34% 3-year EPS growth and 12.52% 3-year revenue growth, with operating-income DCF value of $425.47 and consensus target of $428.14 implying ~26% upside from $338.46.
• Google Cloud closing leverage opportunity despite trailing Azure by $4.6B, with accelerating growth, Waymo leadership in driverless technology, and Other Bets optionality in weather AI and sustainability AI.

Bear Case

• Extreme capital intensity with capex-to-operating-cash-flow of 71.3% compressing free-cash conversion to 11.95% margin and only 6.88% 3-year FCF growth despite 33.34% EPS growth, creating depreciation drag and payoff risk.
• Forward P/E of 22.11 above trailing 16.99 signals expected earnings normalization and multiple compression risk if AI monetization or ad growth decelerates, with Piotroski of 5 indicating middling near-term financial trend.
• Competitive and structural threats from Azure scale advantage in Cloud, AI-native search disruption, and TikTok/Meta competition for YouTube engagement and ad budgets.

Final Verdict

With a Total Score of 78.6/100 reflecting Excellent fundamentals, Alphabet pairs wide-moat durability and High growth at 12.5% revenue and 33.3% EPS on a 3-year basis with Fortress financial strength against an Undervalued profile implied by operating-income DCF near $425 and consensus target near $428 versus ~$338 current. That structural strength and ~26% implied upside is tempered by neutral momentum, broad super-investor trimming, and 71.3% capex intensity constraining free-cash conversion, leaving the outcome centered on execution in AI and Cloud and conversion of infrastructure spend into durable earnings expansion.