๐๐๐From underdog to unstoppable, Google $Alphabet(GOOGL)$
When I first invested in Google, it wasn't the flashiest pick in the Magnificent 7. It did not have the meme magic of Tesla nor the cult like fervour of Nvidia. But Google had something deeper - resilience, scale and a quiet mastery of monetisation. Today I am up 83% and this week Google hit an all time high of USD 214.64. That is not just a number. It is a vindication of my conviction.
Google was not the loudest voice in AI, but it is proving to be the most integrated. From Search to Cloud to YouTube, it is threading AI into every corner of its empire. Q2 25 was the moment Wall Street finally caught up to what some of us already knew.
Q2 2025 Earnings : The Awakening
On July 23, Google reported a blockbuster quarter :
Revenue surged 14% YoY to USD 96.4 billion with double digit growth across Search, YouTube, Subscriptions and Cloud.
Google Cloud revenue jumped 32% to USD 13.6 billion with operating margins doubling to 20.7%.
EPS rose 22% to USD 2.31 and Net Income hit USD 28.2 billion.
AI initiatives like Gemini and AgentSpace are gaining traction with Gemini processing 980 trillion tokens monthly and 450 million monthly active users.
CEO Sundar Pichai called it a standout quarter and rightly so. Google is no longer playing catch up. It is setting the pace. Analysts are now revising their targets upward with September forecasts ranging from USD 203 to USD 247 and an average target price of USD 225, suggesting another 8% to 10% upside.
Why Google Is Still Undervalued
Google's current P/E ratio is 22 compared to Nvidia's P/E ratio at 40 while Amazon's P/E ratio is 60. Yet Google is delivering AI monetisation, Cloud profitability and subscription growth all at once. It is not just undervalued. It is underappreciated.
September 2025: What's Next for Google
September could be pivotal for Google :
Stock forecast : Analysts expect Google to climb to USD 225 with some models projecting up to USD 247.
Catalysts: Continued AI rollout, Cloud backlog growth (now USD 106 billion) and capital expenditure ramp up (USD 85 billion for 2025) signal long term confidence.
Risks: Ad comps may soften due to last year's US election cycle and depreciation from CapEx could pressure margins.
Ad coms refers to advertising comparables - essentially how current advertising revenue compares to the same period last year.
Google's core business still leans heavily on Search and YouTube ads. So when analysts say that ad coms may soften, they are flagging that last year's ad revenue was unusually high and this year might look flat or even down in comparison.
These are growing pains, not red flags.
Concluding Thoughts
Investing in Google wasn't about chasing hype. It was about trusting the fundamentals. It was about seeing the quiet compounding of Search, the sticky engagement of YouTube and the latent power of Cloud.
Now the market is waking up to the huge potential growth of Google. For those investors like me who have held Google through its ups and downs, this 83% gains is more than just profit. It is a dividend of capital growth.
September has been historically a slow month for stocks but not for Google. September is Google's next chapter. I am holding on to my Google stock, not just for returns but for the growth story that is still unfolding.
As the late great Charlie Munger likes to say : "The Big Money is not in the Buying and Selling but in the Waiting."
It is not just about patience. It is about conviction. Charlie Munger believed that once you have found a truly great business, the real magic happens when you let compounding do its quiet work over time. No need to constantly tinker or chase the next shiny thing.
In my case holding on to Google was an act of belief and it has paid off because I have waited.
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