GOOG
Alphabet
Platform / Network
★ Quality 68/100Price today
$335.31
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See what it is worthcharlieapp.co
What this business is made of
The business
The world asks, Google answers — and charges the advertiser next door.
Alphabet earns nearly three-quarters of its revenue selling ads on Search and YouTube, auctioning each slot to the highest bidder per click or impression. The rest comes from Google Cloud, Android, and the Play store. In 2025 it booked $402.8B with 60% gross margin and $132.2B in net income.
Search handles more than 90% of the world's queries: the more users, the better the results, and better results bring more users. Its distribution through Chrome and Android makes it the default on nearly every screen. The advantage is real, but not untouchable: generative AI could change how people search.
Revenue history
From $257.6B to $402.8B in 4 years. The business grows steadily.
Where each $100 of sales goes
Revenue $402.8B · FY2025
Of every $100 in sales, $67 goes to costs and operations; $33 is left as net profit (33% margin).
Catalysts and risks
Google Cloud grows ~30% annually and now runs at a sustained profit.
The $91B in AI capex in 2025 normalizes cash flow if it earns a return.
Gemini integrated into Search and Workspace opens new monetization.
The $91B in AI capex depresses free cash flow today.
ChatGPT and conversational search threaten the heart of the ad business.
The DOJ antitrust case could force distribution changes or asset sales.
Charlie's note
“Paying 21 times cash flow for a business growing 15% with 60% margins is a sensible deal, not a reckless one. The AI capex spooks the market today, but a machine that prints money while it invests doesn't ask for pity; the real danger is AI pulling the chair out from under search.”
Analysis · July 2026
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