I am happy with Alphabet’s (GOOGL) current position. With its robotaxi aspirations fulfilled through Waymo and its significant focus on artificial intelligence via Gemini, Google is not just keeping up—it’s leading the way into tomorrow’s world. The search engine giant has outmatched the S&P over the past three years while innovating its way through the competition. Now, as macroeconomic uncertainty reigns supreme, GOOGL stock is gearing up for a price breakout later this year.
I see shareholder value only improving as Alphabet’s projects continue to scale, and we’re just starting a new wave of growth. Google has plenty of cash, excellent technical proficiency, and always develops new concepts. That alone makes it one of the top prospects to invest in today. I’m bullish on Google stock, and once investors become cognizant of GOOGL’s strategy, the value/growth mix couldn’t be more ideal.
Get Ready for Waymo’s Robotaxis
Waymo’s autonomous ride service, Waymo One, is robustly transitioning from pilot projects to an actual business. On its FYQ1 earnings call, CEO Sundar Pichai mentioned that Waymo is now safely transporting more than a quarter of a million paid autonomous rides per week, a 5x year-over-year growth.
This fast growth is important. More rides in more cities could translate to Waymo beginning to generate meaningful revenue and finally providing a return on years of investment and research. Alphabet categorizes Waymo under “Other Bets,” which brought in just $450 million in revenue across all of its projects in Q1. This suggests that Waymo’s sales are still small, presumably in the tens of millions.
Waymo’s robotaxi in San Francisco’s Chinatown (2024)
The potential before us, though, is gigantic. Morgan Stanley thinks Waymo can reach one billion autonomous miles annually by 2030, a big step up from around 39 million in 2024. To reach this, Waymo would need around 23,000 vehicles—they have ~1,000 at the moment.
When you realize that the ride-hailing and autonomous mobility markets worldwide represent hundreds of billions of dollars in revenue yearly, it becomes evident: if Waymo secures even a moderate market share, the reward would be life-changing for Alphabet. One of the most exciting aspects of this story is that as Waymo expands, its fares should eventually be lower than those of non-autonomous vehicles, simply because there won’t be any drivers to compensate. Lower fares could create new demand (people might choose Waymo over driving themselves), creating a virtuous cycle of more users helping to generate better economies of scale.
Main Street Data showing GOOGL’s operating income split by segment
Profitability is still a long-term goal. Alphabet’s “Other Bets” segment lost $1.23 billion in FYQ1, showcasing its immense cash burn. However, with around $100 billion in cash reserves, Alphabet can continue to fund Waymo until it becomes profitable, even if it takes another few years.
Alphabet in the AI Arms Race
Waymo is running smoothly on the roads, and Google’s AI aspirations are creating a buzz on the internet. This quarter, Google fully rolled out Gemini 2.5, its newest large AI model, across its products and cloud services. Pichai was grinning, saying Gemini 2.5 is “our most intelligent AI model” and that it is “widely recognized as the best model in the industry.”
That is a strong statement, especially in a competitive marketplace with many offerings, including OpenAI’s GPT-4. But Google offered proof: Gemini 2.5 Pro started out number one on the popular AI benchmark Chatbot Arena, with a dramatic improvement in reasoning and coding tests.
The Gemini integration is already helping business performance. Google Cloud revenue in FYQ1 surged by 28% to $12.3 billion. This expansion came as executives said there was “substantial demand” for AI solutions and generative AI tools. Even more astonishing, Google Cloud Platform’s core businesses—data, computing, and AI—grew faster than the Cloud segment overall. Pichai highlighted that Google now has “the best model out there” and is “the leading cloud solution for businesses looking to the new era of AI agents.”
Anjali and Sundar Pichai at the 11th Breakthrough Prize Awards in Santa Monica, CA, April 2025
Google is not alone in this field. Microsoft (MSFT) began its collaboration with OpenAI early on, and AWS (AMZN) continues to have the most significant chunk of the cloud market. Now, Google must translate its technical expertise into tangible profits without breaking the bank. Fortunately, its profits are improving. Google Cloud generated an operating income of $2.17 billion this quarter, compared to $1 billion last year. This kind of financial footing allows Google to continue investing heavily in AI.
In another clever play, Google said it would acquire cybersecurity firm Wiz to further bolster the security of its cloud offerings with AI-driven tools. Developing trust in its platform is key to enticing large companies to commit. If Google can convince more companies that its AI is smarter, quicker, and less expensive, we could see major cloud market share shifts for the first time in years.
What is the Price Target for GOOGL Stock?
Wall Street analysts are overwhelmingly supportive of Alphabet’s future prospects. The average analyst rating for the stock is a Strong Buy, based on 29 Buys, 10 Hold, and zero Sells. The average GOOGL price target is $198.59, indicating a 24% rise within the next 12 months. With Alphabet’s strong fundamentals, growing AI lead, and the encouraging Waymo breakthroughs, I think the currently deflated stock price offers a superb buy-the-dip opportunity.
After reviewing all that Alphabet is doing, I’m more convinced of my bullish outlook than ever. Waymo isn’t just testing, it’s expanding. Gemini isn’t just competing, it’s ahead of the pack. Combined with a strong balance sheet, expanding cloud earnings, and expanding business demand for AI services, these are the key components of a good growth story. Google’s mix of fresh ideas, financial clout, and in-the-trenches follow-through makes it one of the most attractive stocks today. I’m buckled up for the ride, and it seems like it’s only just beginning.
