Conclusion (TL;DR)
Alphabet C (GOOG) still looks attractively valued and very liquid. A 12 % YoY sales increase, a 21 % free-cash-flow margin, a rock-solid balance sheet (current ratio ≈ 1.8, net cash ≈ $75 B) and a modest 18.5× TTM P/E provide a comfortable fundamental cushion while the stock digests this year’s 30 % run-up. Technically the shares are pulling back toward the 30-day moving average (~ $165); that looks like the first support zone, with deeper support near $155. For a medium-/long-term investor who prizes liquidity, GOOG still screens as a high-quality core holding, albeit after a big move.
1. Fundamental snapshot
| Metric (Q1-25) |
Value |
Comment |
| Current ratio |
1.77 |
Strong short-term liquidity 1 |
| Quick ratio (cash + ST inv./curr. liabilities) |
≈ 1.83 |
$167 B cash & equivalents vs. $91.7 B current liabilities 2 |
| Debt-to-equity |
0.03 |
Essentially net-cash balance sheet 2 |
| Revenue YoY growth |
12.0 % |
Ads re-accelerated; Cloud + Cloud AI > 28 % |
| Free-cash-flow margin |
21 % |
$18.9 B FCF on $90.2 B sales 1 |
| TTM P/E |
18.5× |
30–40 % discount to MSFT & AAPL multiples 1 |
Why it matters for you: your current-ratio screen favors companies that can ride out volatility without balance-sheet stress. GOOG easily clears that bar while also monetizing AI and cloud themes you follow.
2. Technical picture (daily)
| Signal |
Reading |
Interpretation |
| Price |
$169.39 (6-4-25 close) |
1 % off all-time high |
| MAs |
5-d 170.7, 10-d 171.2, 30-d 165.2 |
Short MAs rolling over; 30-d still rising |
| MACD |
Flattening above zero |
Momentum cooling, not yet bearish |
| RSI |
54 (14-d) |
Neutral; short RSI touches 21 → mild oversold blip |
| Volume |
Light vs. May earnings spike |
Consolidation, no distribution yet |
The stock is digesting gains inside a $165–178 channel. A decisive break of $165 could open $155 (late-Mar swing low) but holding above $165 would keep the up-trend intact.
(The chart you supplied visually confirms these levels.)
3. Catalysts & headwinds
Positive
• Gemini/PaLM 2 rollout across Search, Ads and Cloud → incremental ad CPC and Cloud attach rates
• YouTube Shorts monetization gaining share of social video ad spend
• Cost discipline (CapEx flattening) keeps FCF conversion high, funding buybacks (~ $70 B authorized)
Risks
• DOJ antitrust trial (ad-tech breakup possibility late ’25)
• AI search competitors (OpenAI/Microsoft Copilot) pressuring ad margins
• Macro ad-spend cyclicality—if U.S. growth slows, top line could moderate back to high-single digits
4. How to act
- Entry zone: $165–170 gives a 17–18× forward P/E, attractive vs. peers.
- Add aggressively only if price holds 30-d MA on volume uptick—confirms buyers defending the trend.
- Trim/watchlist if the stock loses $155 on heavy volume (would break the post-earnings base).
5. Bottom line
Alphabet couples high operating leverage to secular AI, Cloud and digital-ads growth while retaining one of the best liquidity profiles in mega-cap tech. That checks every box of your strategy—strong current ratio, AI exposure, and reasonable price. Near-term consolidation is healthy; use it to accumulate rather than chase.
Disclaimer: This analysis is for informational purposes and not a solicitation to buy or sell securities.
6/5/2025 08:34am
