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Alphabet shares double as AI-driven revenue growth surges, but rising costs pressure margins.

Company Fundamentals
06 Apr 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Alphabet Inc. has seen its shares rise 100% over the past year, driven by strong AI integration, especially with its Gemini 3 AI, boosting Q4 2025 revenue by 18% year-over-year to $113.8 billion. Growth in Google Cloud and Search contributed significantly to this surge. However, the company plans to invest $180 billion in capital expenditures in 2026, which will likely pressure profit margins and cause negative free cash flow despite strong revenue growth. Alphabet now trades at a premium valuation with a 27x price-to-earnings ratio, but earnings per share growth is expected to lag due to increasing AI-related expenses.

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