Is GOOGL a good stock to buy? We came across a bullish thesis on Alphabet Inc. on r/ValueInvesting by JoLagoni. In this article, we will summarize the bulls’ thesis on GOOGL. Alphabet Inc.’s share was trading at $368.53 as of June 5th. GOOGL’s trailing and forward P/E were 28.11 and 26.11 respectively according to Yahoo Finance.
Photo by Firmbee.com on Unsplash
Alphabet Inc. offers various products and platforms in the United States and internationally. GOOG is presented as a compelling long-term beneficiary of the accelerating artificial intelligence adoption cycle, with recent performance reinforcing the view that the AI investment boom remains in its early stages.
Read More: 15 AI Stocks That Are Quietly Making Investors Rich
Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential
The thesis centers on the company’s strong cloud momentum, which is viewed as a leading indicator of growing enterprise AI demand. Google Cloud is positioned as a comprehensive platform serving both startups and large enterprises, benefiting from Alphabet’s integrated capabilities across infrastructure, custom TPUs, proprietary AI models, and its vast data ecosystem.
The company’s search franchise remains a significant competitive advantage, with Gemini integration helping maintain relevance as AI-powered search evolves. A key pillar of the bullish outlook is Alphabet’s partnership with Anthropic, whose Claude models are viewed as among the strongest offerings in the market. Rising demand for AI tools and subscriptions from businesses and software professionals is seen as evidence that real-world monetization is already occurring, while reported capacity constraints and outages at Anthropic suggest demand continues to exceed available supply.
The thesis argues that this demand surge should translate into sustained cloud revenue growth for Alphabet over the coming years. Broader AI spending trends also support the investment case, as venture-backed startups continue to invest heavily in compute resources and AI tokens in pursuit of long-term growth opportunities. This spending is expected to persist for years before any meaningful demand correction occurs.
Given these dynamics, Alphabet is viewed as one of the safest ways to gain exposure to the AI theme, supported by additional assets such as Waymo and its investment portfolio. The thesis sees substantial valuation upside, with forward earnings multiples potentially expanding above 40x and the stock ultimately reaching $600 per share.
Previously, we covered a bullish thesis on Alphabet Inc. (GOOGL) by FluentInQuality in May 2025, which highlighted the company’s dominance across Search, YouTube, Android, Google Cloud, and AI, supported by its powerful distribution ecosystem. GOOGL’s stock price has appreciated by approximately 132.56% since our coverage. JoLagoni shares a similar view but emphasizes on accelerating AI-driven cloud demand, the Anthropic partnership, and a potential path to $600 per share.
Alphabet Inc. is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 265 hedge fund portfolios held GOOGL at the end of the first quarter which was 288 in the previous quarter. While we acknowledge the risk and potential of GOOGL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GOOGL and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
