Image Source: Unsplash

When one of the biggest tech giants in the world drops earnings, investors pay attention. And Alphabet (Google’s parent company) just gave us plenty to get excited about.

In its Q1 2025 report, Alphabet delivered strong growth across the board, from skyrocketing profits to major wins in AI and Cloud. With a surprise earnings beat, a $70 billion stock buyback, and a dividend increase, the company sent a clear message to Wall Street: 

Alphabet is not slowing down.

But what does all this mean for beginner investors? In this blog, we’ll break it down using the IDDA method, looking at Alphabet’s capital strength, business strategy, financials, market sentiment, and stock chart performance — so you can decide if GOOGL deserves a spot in your long-term portfolio.

Let’s dive in 

IDDA Point 1 & 2: Capital & Intentional

Before investing in Alphabet (GOOGL), ask yourself:

 Does this stock fit your long-term investing goals?

 Are you looking for innovation, steady growth, or a mix of both?

 Are you comfortable holding through market ups and downs for strong potential returns?

Alphabet is a solid, lower-risk growth stock backed by strong financials, a dominant market position, and growing shareholder rewards. With a 12% revenue boost, a massive $70B stock buyback, and a 5% dividend increase, the company is showing confidence in its future.

If you believe in the long-term power of AI, cloud technology, and digital advertising, GOOGL could be a great addition to your portfolio. It’s not a flashy “get rich quick” stock—but it’s built for compounding wealth over time.

If you prefer high dividend payouts or lower volatility, it might not be your top pick but for long-term investors who want exposure to big tech and innovation, Alphabet seems to be checking all the right boxes.

IDDA Point 3:Fundamental

Alphabet (the parent company of Google) reported 

$90.2 billion in revenue for Q1 2025 – a 12% increase from last year. Even more impressive, their net income jumped 46% to $34.5 billion, and earnings per share (EPS) rose from $1.89 to $2.81.

Google Cloud alone brought in $12.3 billion, growing a huge 28% year over year, while Google Search made $50.7 billion and YouTube ads brought in nearly $9 billion.

On top of that, Alphabet announced a $70 billion stock buyback and raised their quarterly dividend by 5% to $0.21 per share. That’s great news for investors looking for growth and passive income.

Alphabet continues to lead in the AI and tech space. CEO Sundar Pichai emphasized their “full stack AI approach” as a major driver of growth. Their newest AI model, Gemini 2.5, is powering features like AI Overviews, which already has 1.5 billion monthly users. 

The company’s vision is clear: integrate AI deeply into everything – Search, Cloud, YouTube, and more.

They’re also focused on sustainable growth and increasing value for shareholders – shown through their rising dividends and massive stock buyback program.

Alphabet is performing exceptionally well across all major financial metrics:

• Revenue: $90.2B (up 12% YoY)
• Net Income: $34.5B (up 46% YoY)
• EPS (a measure of profitability): $2.81 (up from $1.89)
• Operating Margin: 34% (up from 32%)
• Cash Payouts: $2.4B in dividends + $70B approved for buybacks

Their strong balance sheet, cash flow, and high-margin businesses (like Search and Cloud) make Alphabet a financially sound long-term investment.

IDDA Point 4:Sentimental

The market reacted very positively to the earnings report. GOOGL stock spiked in after-hours trading showing renewed investor confidence.

Analysts were impressed by the earnings beat, strong growth in Cloud and AI, and shareholder-friendly moves like the dividend increase and buybacks. Retail and institutional sentiment appears bullish, especially with the company exceeding even the most optimistic forecasts.

 Bull Case (Why investors are excited about Alphabet):

Strong Financial Performance

Alphabet just posted a 46% jump in profit and 12% revenue growth in Q1 2025. That’s a big deal — it means the company is still growing fast and making a lot of money.

AI Leadership

Their new AI model, Gemini 2.5, is leading the charge. Features like AI Overviews are already reaching 1.5 billion users/month, and AI is boosting user engagement across Search and Cloud.Cloud is BoomingGoogle Cloud revenue surged 28%, showing that Alphabet is becoming a serious player in cloud computing — a fast-growing space where Amazon and Microsoft dominate.

Shareholder-Friendly Moves

Alphabet is buying back $70 billion in stock (which can boost share prices) and raising its dividend (good for income-focused investors).

Diversified Revenue

From Search and YouTube to Cloud and hardware, Alphabet has multiple money-making machines — so it’s not relying on just one thing.

 Bear Case (What could go wrong):

Ad Revenue Sensitivity

Alphabet still gets most of its money from ads. If the economy slows down or businesses cut ad spending, it could hurt Google’s income.

Regulatory Pressure

Alphabet is constantly under scrutiny from governments — from antitrust lawsuits to data privacy concerns — which could lead to big fines or forced business changes.

AI Arms Race

While Alphabet is ahead now, competitors like Microsoft (with OpenAI) are moving fast. If Google slips in AI innovation, it could lose its edge.

Cloud Competition

Yes, Google Cloud is growing fast — but it’s still behind Amazon AWS and Microsoft Azure. Gaining ground won’t be easy (or cheap).

Want our top stock picks and analysis every month? Get our monthly newsletter here.

IDDA Point 5:Technical

What are the charts telling us?

Weekly Chart:

GOOGL trended upward throughout 2023, followed by a pullback between July and September 2024. It resumed its uptrend afterward but has been pulling back again since the start of 2025, with a price drop of approximately 31.53%. 

Currently, the candlestick is sitting just below the Ichimoku Cloud, which is acting as a resistance zone. Although a bearish death cross has occurred, the future cloud appears small and flat, suggesting that the bearish momentum may be weakening.

(Click on image to enlarge)

Daily Chart:
The most recent candlestick is a bullish engulfing bar, reflecting the market’s strong positive reaction to Alphabet’s earnings. While the future cloud remains bearish, the Tenkan-sen is moving closer to the Kijun-sen. If a crossover occurs, it would form a bullish “golden cross”, indicating a potential trend reversal.

Additionally, a small double bottom pattern is forming (highlighted by the blue circles), which is another bullish reversal signal. The current price is sitting right on the neckline of this pattern. A confirmed breakout above the neckline would strengthen the case for a rebound.

(Click on image to enlarge)

Investors looking to get in and invest in GOOGL can consider these buy limit levels.

Current market price 159.28 (High Risk)

152.72 (Medium Risk)

 140.54 (Low Risk)

Here are the Invest Diva ‘Confidence Compass’ questions to ask yourself before buying at each level:

1. If I buy at this price and the price drops by another 50%, how would I feel? Would I panic, or would I buy more to dollar-cost average at lower prices?

2. If I don’t buy at this price and the market suddenly turns around and starts going up again, will I beat myself up for not having bought at this level?

Remember: Investing is personal, and what is right for me might not be right for you. Always do your own due diligence. You should ONLY invest based on your own risk tolerance and your timeframe for reaching your portfolio goals

IDDA Summary for Alphabet

In summary, Alphabet’s Q1 2025 results were a strong reminder of the company’s resilience and innovation-driven growth. With double-digit revenue increases across Search, YouTube, Subscriptions, and Cloud, a 46% surge in net income, and a massive $70B stock buyback program, Alphabet is proving it’s not just surviving — it’s thriving.

Technical indicators are showing early signs of a potential rebound, and while risks like regulatory pressures and AI competition remain, the long-term outlook for GOOGL appears promising for investors who can handle some short-term volatility.

More By This Author: