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Alphabet Inc. (GOOGL): The Cloud Computing Stock to Buy According to Analysts

AInvestSaturday, Jan 11, 2025 2:18 pm ET
1min read



Alphabet Inc. (GOOGL), the parent company of Google, has been making significant strides in the cloud computing industry. With a growing customer base and increasing revenue, GOOGL has caught the attention of analysts who believe it is the best cloud computing stock to buy. In this article, we will explore the reasons behind this sentiment and discuss the company's cloud computing performance compared to its competitors, such as Amazon Web Services (AWS) and Microsoft Azure.

Alphabet Inc. (GOOGL) has been steadily gaining market share in the cloud computing industry. In the first quarter of 2024, Google Cloud had a 10% market share, which is lower than AWS's 31% and Azure's 25%. However, Google Cloud has been growing its customer base, with the Startup segment growing the fastest YoY at 28.1% and SMB growth reaching 8.7% YoY. This indicates that Google Cloud is making progress in attracting new customers, particularly in the startup and SMB segments.

In terms of revenue, Google Cloud generated $33.1 billion in 2023, which is lower than AWS's $59.8 billion and Azure's $21.3 billion in the same year. However, Google Cloud's revenue has been growing at a significant rate, with Q4 2023 earnings up 26% versus Q4 2022.

Google Cloud's services are comparable to those of AWS and Azure, and it is considered one of the major cloud providers. However, Google Cloud has historically been less aligned with enterprise customers and offers fewer services compared to AWS and Azure. Nevertheless, Google Cloud is working towards being more integrated with enterprise IT, as evidenced by the rise in enterprises adopting Google Cloud.



In conclusion, Alphabet Inc. (GOOGL) has been making significant progress in the cloud computing industry, with a growing customer base and increasing revenue. While its market share and revenue are lower than those of AWS and Azure, Google Cloud has been growing at a significant rate and is considered one of the major cloud providers. With its strong financial performance and positive analyst ratings, GOOGL is the cloud computing stock to buy according to analysts. As the cloud computing industry continues to grow, GOOGL is well-positioned to capitalize on this trend and deliver strong returns for investors.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.