Alphabet's Q2 Earnings Preview: Who Owns GOOGL Stock

Alphabet (GOOGL) is set to report Q2 2025 earnings tomorrow, with Wall Street expecting EPS of $2.18 and revenue of $93.91 billion. Analysts have raised price targets, citing growth from generative AI adoption. Public companies and individual investors own 49.69% of GOOGL, followed by mutual funds, ETFs, insiders, and other institutional investors. The top shareholders include Vanguard (7.87%), Vanguard Index Funds (7%), and Vanguard Total Stock Market ETF (3.19%). GOOGL has a Strong Buy consensus rating with an average price target of $205.71.

Alphabet Inc. (GOOGL), the parent company of Google, is poised to report its Q2 2025 earnings tomorrow, with Wall Street expecting an earnings per share (EPS) of $2.18 and revenue of $93.91 billion. Analysts have raised price targets, citing growth from generative AI adoption. Public companies and individual investors own 49.69% of GOOGL, followed by mutual funds, ETFs, insiders, and other institutional investors. The top shareholders include Vanguard (7.87%), Vanguard Index Funds (7%), and Vanguard Total Stock Market ETF (3.19%). GOOGL has a Strong Buy consensus rating with an average price target of $205.71 [1].

Alphabet's earnings report is expected to highlight the company's continued dominance in AI and cloud computing. The company's Google Cloud division is projected to see a 26% year-over-year (YoY) growth, reaching $12.26 billion in Q2 2025, driven by the increasing adoption of AI-infused infrastructure [1]. The Gemini 2.5 Pro model, which powers over 500 million users across Android and Search, and AI Overviews used by 1.5 billion monthly users, are expected to enhance engagement and ad revenue [1].

YouTube's ad sales remain a steady cash cow, benefiting from rising video consumption and AI-driven content recommendations. Alphabet's commitment to AI is underscored by its $75 billion 2025 capex in AI infrastructure [1].

However, Alphabet faces significant regulatory challenges that could redefine its business model. In the U.S., a recent district court ruling found Google guilty of antitrust violations in its online advertising business, potentially forcing structural changes such as spinning off Chrome or altering its ad tech stack [1]. In Europe, the €4.1 billion fine for Android's anticompetitive practices remains unresolved, with further penalties possible [1].

Despite these risks, Alphabet's Zacks Earnings ESP score remains strong, reflecting confidence in its ability to execute on AI and cloud growth. The Zacks Rank #3 (Hold), however, reflects a cautious stance due to near-term headwinds. The forward P/E of 26.91—below peers like Microsoft (38.19)—and a consensus price target of $198.17 (a 30.8% upside from April 2025 levels) highlight undervaluation [1].

Alphabet presents a compelling risk-reward trade for long-term investors. A close above $160 could unlock upside to $172, with further gains to $194 if earnings beat expectations. However, investors must remain vigilant regarding cloud margins, AI user metrics, and antitrust outcomes [1].

Bank of America analysts are optimistic about Alphabet's Q2 earnings, forecasting above-consensus earnings driven by strong AI tailwinds, ad recovery, and robust enterprise software demand. Alphabet's search revenue is expected to rise 11% YoY, while Google Cloud is projected to grow 26% YoY [2].

Microsoft, another major player in AI and cloud computing, is also expected to report strong Q2 earnings. Bank of America raised its price target for Microsoft to $340, citing robust Azure cloud business and enterprise software demand [3].

Institutional ownership of Alphabet has been stable, with public companies and individual investors holding 49.69% of GOOGL. The top shareholders include Vanguard, Vanguard Index Funds, and Vanguard Total Stock Market ETF [3].

Alphabet's Q2 earnings are likely to deliver a near-term win, but its long-term trajectory hinges on balancing innovation with regulatory survival. Investors should consider accumulating shares if the stock dips toward the $147 support, using the Zacks Rank and technicals as a guide. However, a sustained miss on cloud margins or an adverse antitrust ruling could justify taking profits.

References:
[1] https://www.ainvest.com/news/alphabet-q2-2025-earnings-strategic-balance-ai-triumphs-regulatory-crosswinds-2507/
[2] https://www.ainvest.com/news/alphabet-microsoft-forecast-strong-earnings-ai-tailwinds-2507/
[3] https://www.marketbeat.com/stocks/NASDAQ/GOOG/institutional-ownership/