What are the investment strengths of Alphabet Inc (GOOGL)?

32% ROIC TTM at 387B equity scale is structurally rare - network effects in Search/YouTube create durable pricing power that competitors cannot replicate 151B operating cash flow TTM funds 78B capex AND leaves 73B FCF - self-funding AI transition without dilution or leverage

What are the investment risks for Alphabet Inc (GOOGL)?

78B capex TTM (20% of revenue) with uncertain AI monetization timeline - if cloud/AI returns disappoint, FCF could halve 57B accounts receivable (15% of revenue) concentrated in ad buyers - economic downturn could trigger collection delays and bad debt

Alphabet Inc

GOOGL

—

Alphabet Inc AI Insights

Informational only. Not investment advice.

As of 2025-12-08

Snapshot

Operating margin 32.2% TTM vs industry median -2.4% - dominant cost structure enables 55.6B R&D spend while generating 124B net income[Operating Margin TTM]
ROIC 32.6% TTM with debt/equity of 0.09 - exceptional capital efficiency without leverage; 387B equity base compounds at elite rates[ROIC TTM]
Capex 77.9B TTM (20% of revenue) vs FCF 73.6B - heavy AI infrastructure investment consuming nearly all operating cash flow[Capital Expenditure TTM]

Watch Triggers

Capital Expenditure TTM: Exceeds 90B or >23% of revenue — Would signal FCF compression below 50B, forcing dividend/buyback cuts
Operating Margin TTM: Falls below 28% — Would indicate AI spend eroding core profitability, not just capex timing
Free Cash Flow TTM: Falls below 60B for 2 consecutive quarters — Signals capex ROI thesis failing; may require debt or slower investment

Bull Case

32% ROIC TTM at 387B equity scale is structurally rare - network effects in Search/YouTube create durable pricing power that competitors cannot replicate

ROIC TTMCommon Stockholders EquityOperating Margin TTM

151B operating cash flow TTM funds 78B capex AND leaves 73B FCF - self-funding AI transition without dilution or leverage

Cash Flow TTMFree Cash Flow TTMDebt to Equity

Bear Case

78B capex TTM (20% of revenue) with uncertain AI monetization timeline - if cloud/AI returns disappoint, FCF could halve

Capital Expenditure TTMFree Cash Flow TTM

57B accounts receivable (15% of revenue) concentrated in ad buyers - economic downturn could trigger collection delays and bad debt

Accounts ReceivableTotal Revenue TTM

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

65%

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Forward Thesis

AI infrastructure spend will compress FCF margins near-term but widen competitive moat by 2026

1-3ymed

Capex doubled to 78B TTM for AI/cloud buildout
Operating margin stable at 32% despite investment surge
R&D 55.6B (14% of revenue) sustains innovation pipeline

FCF 73.6B despite 78B capex shows core cash engine intactNet margin 32.2% TTM unchanged vs prior periodsDebt/equity 0.09 provides optionality for sustained spend

Valuation Context

Caveats

Public Strategies Rankings

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GOOGL Fundamentals

Information → Other Information Services

Metric	Value	YoY Growth	Industry Percentile
Market Cap	$4.19T		—
Enterprise Value	$4.2T		—
P/E Ratio	40		—
Total Revenue - TTM	$385.48B	+13.4%	—
Earnings Per Share (diluted) - TTM	$8.65		—
Operating Margin - TTM	32.2%	+1.3%	—
Net Margin - TTM	32.2%	+4.5%	—
Free Cash Flow - TTM	$73.55B	+31.8%	—
Return on Common Equity - TTM	0.35	+3.3%	—
Beta 5Y (Monthly)	unknown		—

GOOGL Dividend History

7 dividends

2025

$0.8300

12/08/25$0.2100

09/08/25$0.2100

06/09/25$0.2100

03/10/25$0.2000

2024

$0.6000

12/09/24$0.2000

09/09/24$0.2000

06/10/24$0.2000

GOOGL Stock Splits

2 stock splits

07/18/221:20 split

04/03/141:2 split

GOOGL SEC Filings

Filing Date	Report Date	Report Type	Filing Link
10/30/25	09/30/25	10-Q	0001652044-25-000091
07/24/25	06/30/25	10-Q	0001652044-25-000062
04/25/25	03/31/25	10-Q	0001652044-25-000043
02/05/25	12/31/24	Unknown	0001652044-25-000014
10/30/24	09/30/24	10-Q	0001652044-24-000118
07/24/24	06/30/24	10-Q	0001652044-24-000079
04/26/24	03/31/24	10-Q	0001652044-24-000053
01/31/24	12/31/23	10-K	0001652044-24-000022
10/25/23	09/30/23	10-Q	0001652044-23-000094
07/26/23	06/30/23	10-Q	0001652044-23-000070
04/26/23	03/31/23	10-Q	0001652044-23-000045
02/03/23	12/31/22	10-K	0001652044-23-000016
10/26/22	09/30/22	10-Q	0001652044-22-000090
07/27/22	06/30/22	10-Q	0001652044-22-000071
04/27/22	03/31/22	10-Q	0001652044-22-000029
02/02/22	12/31/21	10-K	0001652044-22-000019
10/27/21	09/30/21	10-Q	0001652044-21-000057
07/28/21	06/30/21	10-Q	0001652044-21-000047
04/28/21	03/31/21	10-Q	0001652044-21-000020
02/03/21	12/31/20	10-K	0001652044-21-000010
10/30/20	09/30/20	10-Q	0001652044-20-000050
07/31/20	06/30/20	10-Q	0001652044-20-000032
04/29/20	03/31/20	10-Q	0001652044-20-000021
02/04/20	12/31/19	10-K	0001652044-20-000008
10/29/19	09/30/19	10-Q	0001652044-19-000032
07/26/19	06/30/19	10-Q	0001652044-19-000023
04/30/19	03/31/19	10-Q	0001652044-19-000015
02/05/19	12/31/18	10-K	0001652044-19-000004
10/26/18	09/30/18	10-Q	0001652044-18-000035
07/24/18	06/30/18	10-Q	0001652044-18-000027
04/24/18	03/31/18	10-Q	0001652044-18-000016
02/06/18	12/31/17	10-K	0001652044-18-000007
10/27/17	09/30/17	10-Q	0001652044-17-000042
07/25/17	06/30/17	10-Q	0001652044-17-000026
05/02/17	03/31/17	10-Q	0001652044-17-000014
02/03/17	12/31/16	10-K	0001652044-17-000008
11/03/16	09/30/16	10-Q	0001652044-16-000038
08/04/16	06/30/16	10-Q	0001652044-16-000032
05/03/16	03/31/16	10-Q	0001652044-16-000021
02/11/16	12/31/15	10-K	0001652044-16-000012
10/29/15	09/30/15	10-Q	0001652044-15-000005
07/23/15	06/30/15	10-Q	0001288776-15-000035
04/29/15	03/31/15	10-Q	0001288776-15-000023
02/09/15	12/31/14	10-K	0001288776-15-000008
10/23/14	09/30/14	10-Q	0001288776-14-000075
10/29/15	09/30/14	10-Q	0001288776-15-000046
07/25/14	06/30/14	10-Q	0001288776-14-000065
04/24/14	03/31/14	10-Q	0001288776-14-000040
02/12/14	12/31/13	10-K	0001288776-14-000020
10/24/13	09/30/13	10-Q	0001288776-13-000068
07/25/13	06/30/13	10-Q	0001288776-13-000055
04/25/13	03/31/13	10-Q	0001288776-13-000030
01/29/13	12/31/12	10-K	0001193125-13-028362
10/30/12	09/30/12	10-Q	0001193125-12-440217
07/24/12	06/30/12	10-Q	0001193125-12-312575
04/25/12	03/31/12	10-Q	0001193125-12-182401
01/26/12	12/31/11	10-K	0001193125-12-025336
10/26/11	09/30/11	10-Q	0001193125-11-282235
07/27/11	06/30/11	10-Q	0001193125-11-199078
05/10/11	03/31/11	10-Q	0001193125-11-134428
02/11/11	12/31/10	10-K	0001193125-11-032930
10/29/10	09/30/10	10-Q	0001193125-10-241317
07/30/10	06/30/10	10-Q	0001193125-10-172387
05/05/10	03/31/10	10-Q	0001193125-10-108704
02/12/10	12/31/09	10-K	0001193125-10-030774
11/04/09	09/30/09	10-Q	0001193125-09-222384
08/04/09	06/30/09	10-Q	0001193125-09-163845
05/06/09	03/31/09	10-Q	0001193125-09-101727
02/13/09	12/31/08	10-K	0001193125-09-029448
11/07/08	09/30/08	10-Q	0001193125-08-230197
08/07/08	06/30/08	10-Q	0001193125-08-170309
05/12/08	03/31/08	10-Q	0001193125-08-111739
02/15/08	12/31/07	10-K	0001193125-08-032690
11/07/07	09/30/07	10-Q	0001193125-07-238468
08/09/07	06/30/07	10-Q	0001193125-07-175880
05/09/07	03/31/07	10-Q	0001193125-07-108436
03/01/07	12/31/06	Unknown	--
11/08/06	09/30/06	10-Q	0001193125-06-228163
08/09/06	06/30/06	Unknown	--
05/10/06	03/31/06	10-Q	0001193125-06-107734
05/10/06	03/30/06	Unknown	--
03/16/06	12/31/05	Unknown	--
11/14/05	09/30/05	Unknown	--
08/09/06	06/30/05	10-Q	0001193125-06-167945
08/15/05	06/30/05	Unknown	--
05/16/05	03/31/05	10-Q	0001193125-05-108755
05/16/05	03/30/05	Unknown	--
03/30/05	12/31/04	10-K	0001193125-05-065298
11/15/04	09/30/04	Unknown	--
11/14/05	09/30/04	10-Q	0001193125-05-225524
08/15/05	06/30/04	10-Q	0001193125-05-168339
08/16/04	06/30/04	Unknown	--
03/31/04	03/30/04	Unknown	--
06/30/03	06/30/03	Unknown	--