Mountain View, California-based Alphabet Inc. (GOOGL) is a multinational technology conglomerate holding company offering various products and platforms. With a market cap of $2.3 trillion, GOOGL provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products.
Shares of this internet media giant have underperformed the broader market over the past year. GOOGL has gained 10.8% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 14.5%. In 2025, GOOGL’s stock fell marginally, compared to the SPX’s 6.1% rise on a YTD basis.
Narrowing the focus, GOOGL’s underperformance is also apparent compared to the Invesco NASDAQ Internet ETF (PNQI). The exchange-traded fund has gained about 29.4% over the past year. Moreover, the ETF’s 9.7% gains on a YTD basis outshine the stock’s marginal returns over the same time frame.
Google's underperformance stems from intensifying AI competition from startups like OpenAI's ChatGPT and regulatory challenges, including a potential breakup that could force the sale of Chrome, as the company tries to maintain dominance in search with its new AI features.
On Jul. 23, GOOGL shares closed down marginally after reporting its Q2 results. Its EPS of $2.31 topped Wall Street expectations of $2.15. The company’s revenue was $96.4 billion, topping Wall Street forecasts of $79.5 billion.
For the current fiscal year, ending in December, analysts expect GOOGL’s EPS to grow 23.6% to $9.94 on a diluted basis. The company’s earnings surprise history is impressive. It beat the consensus estimate in each of the last four quarters.
Among the 53 analysts covering GOOGL stock, the consensus is a “Strong Buy.” That’s based on 41 “Strong Buy” ratings, four “Moderate Buys,” and eight “Holds.”
The configuration has been consistent over the past three months.
On Jul. 31, Tyler Radke from Citigroup Inc. (C) maintained a “Buy” rating on GOOGL with a price target of $225, implying a potential upside of 19% from current levels.
The mean price target of $219.16 represents a 15.9% premium to GOOGL’s current price levels. The Street-high price target of $250 suggests a notable upside potential of 32.2%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
