Is GOOG a safe investment?
7/18/2025 02:04am
**Google (GOOG) appears to be a relatively safe investment**, and here's why:
1. **Strong Financial Performance**: Google's financials are robust, with a net income growth rate of 45.97% and a revenue growth rate of 12.04%. The company's diluted EPS has also seen a significant year-over-year growth of 48.68%, indicating profitability and stability.
|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|GOOG|GOOG.O|Alphabet C|2024 Q2|28.58776132404181|13.589083695244222|31.25|185|
|GOOG|GOOG.O|Alphabet C|2024 Q3|33.58220326070395|15.092642092498664|36.7741935483871|185|
|GOOG|GOOG.O|Alphabet C|2024 Q4|28.273795137042583|11.770362646275055|31.097560975609756|185|
|GOOG|GOOG.O|Alphabet C|2025 Q1|45.97244527089849|12.03764635766523|48.677248677248684|185|
2. **Attractive Dividend Yield**: The dividend yield for Google is 0.44%, which while not high, is still attractive for income-seeking investors, especially considering the low debt-to-equity ratio of 0.03%.
|code|Ticker|Name|Date|Payout Ratio|Dividend Yield (TTM)|market_code|
|---|---|---|---|---|---|---|
|GOOG|GOOG.O|Alphabet C|20240717|0.4209677821990153|0.10994414631475193|185|
|GOOG|GOOG.O|Alphabet C|20240718|0.4209677821990153|0.11202990737640887|185|
|GOOG|GOOG.O|Alphabet C|20240719|0.4209677821990153|0.11192374156864932|185|
|GOOG|GOOG.O|Alphabet C|20240720|0.4209677821990153||185|
|GOOG|GOOG.O|Alphabet C|20240721|0.4209677821990153||185|
|GOOG|GOOG.O|Alphabet C|20240722|0.4209677821990153|0.10950640850831742|185|
|GOOG|GOOG.O|Alphabet C|20240723|0.4209677821990153|0.10935729847494553|185|
|GOOG|GOOG.O|Alphabet C|20240724|0.8419355643980306|0.11514595400584962|185|
|GOOG|GOOG.O|Alphabet C|20240725|0.8419355643980306|0.11869236226058168|185|
|GOOG|GOOG.O|Alphabet C|20240726|0.8419355643980306|0.1190301161963481|185|
3. **Healthy Profit Margins**: The company's P/E ratio is 18.08, which suggests that investors are willing to pay a premium for Google's earnings. A P/S ratio of 6.2 and a price-to-book ratio of 5.81 also indicate that the market has confidence in Google's future prospects.
|code|Ticker|Name|Date|P/E(TTM)|P/S|Price to Book Ratio|market_code|
|---|---|---|---|---|---|---|---|
|GOOG|GOOG.O|Alphabet C|20240717|27.2802|6.800697599845113|7.706553523377634|185|
|GOOG|GOOG.O|Alphabet C|20240718|26.7723|6.674082925442126|7.5630737184302905|185|
|GOOG|GOOG.O|Alphabet C|20240719|26.797695|6.680413659162276|7.570247708677658|185|
|GOOG|GOOG.O|Alphabet C|20240722|27.389249|6.827882515231636|7.7373594814986815|185|
|GOOG|GOOG.O|Alphabet C|20240723|27.426595|6.837192417761267|7.747909467156575|185|
|GOOG|GOOG.O|Alphabet C|20240724|26.047796|6.493470816367277|7.137068291920612|185|
|GOOG|GOOG.O|Alphabet C|20240725|25.269514|6.29945244764976|6.923819878770952|185|
|GOOG|GOOG.O|Alphabet C|20240726|25.19781|6.281577434792868|6.90417319195486|185|
|GOOG|GOOG.O|Alphabet C|20240729|25.563797|6.372814479583255|7.004453155911994|185|
|GOOG|GOOG.O|Alphabet C|20240730|25.672846|6.399999394969779|7.034332492111468|185|
4. **Robust Free Cash Flow**: With free cash flow of $18.95 billion, Google has the liquidity to weather economic storms and invest in growth opportunities.
|code|Ticker|Name|Date|Free Cash Flow|Debt-to-Equity Ratio|market_code|
|---|---|---|---|---|---|---|
|GOOG|GOOG.O|Alphabet C|2024 Q2|3.6201015914E10|0.044016186039707|185|
|GOOG|GOOG.O|Alphabet C|2024 Q3|5.9706022712E10|0.039147584195798404|185|
|GOOG|GOOG.O|Alphabet C|2024 Q4|7.8021013075E10|0.033477501199689924|185|
|GOOG|GOOG.O|Alphabet C|2025 Q1|3.9905987537E10|0.03152922231200781|185|
5. **Commitment to Cybersecurity and AI Safety**: Google's focus on cybersecurity, as evidenced by the Google Safety Center and the Secure AI Framework (SAIF), demonstrates a commitment to protecting user data and ensuring the safe development of AI technologies. This is crucial in today's digital landscape, where cybersecurity threats are ever-evolving.
6. **Transparency and Accountability**: The company's transparency reports, such as the Safe Browsing site status report, show a commitment to accountability and providing information on the safety of their services.
In conclusion, Google's strong financials, attractive dividend yield, healthy profit margins, robust free cash flow, and commitment to cybersecurity and AI safety make it a relatively safe investment. However, as with any investment, it's important to consider your individual risk tolerance and investment goals.