By Trefis Team
Publication Date: 2026-06-12 23:07:00
Alphabet (GOOGL) stock is at an interesting point right now. It has strong momentum, and if you bet on it, you are betting on a company with strong profitability, good cash flow, a low-debt to market cap structure, and good tailwinds. But is that enough?
Why Bet On GOOGL Now?
The investment thesis is centered on the market re-rating of Google from a mature digital advertising business to a diversified, vertically integrated AI leader. This is being driven by the dramatic acceleration and profitability inflection of Google Cloud, which is capturing massive enterprise AI workloads. The market is underappreciating the forward visibility provided by the near-doubled backlog, which signals durable, high-margin growth that will lift Google’s consolidated financial profile.
- Google Cloud revenue growth accelerated to 63.4% YoY in Q1 2026.
- Google Cloud operating margin increased from 17.8% to 32.9% YoY in Q1 2026.
- Google Cloud backlog nearly doubled sequentially to $462 billion in…