Alphabet Inc. (GOOGL) stock analysis

In our weekly check, Alphabet Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4.

About Alphabet Inc.

Alphabet Inc. is a Technology company (Internet Content & Information) based in the United States, listed on NASDAQ as GOOGL.

What our checks show for GOOGL

Red flags

• Analysts expect the net margin to shrink by 25.1 points from today's 54.8%.
• The stock has fallen as much as 65% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.8 years.
• Pay in shares equals 52.8% of free cash flow: it dilutes shareholders.

Warning signs

• Operating cash flow is only 0.76x net profit: part of the reported profit does not arrive as cash.
• Analysts expect earnings per share to shrink about 3.7% a year.
• Beta 1.21: the stock usually moves more than the market, both up and down.

Strengths

• Net debt is only 0.2x a year of EBITDA: the balance sheet has room.
• Operating profit covers interest 84.3 times over.
• The net margin rose by 25.3 points over 5 years, to 54.8%.
• The gross margin is 60.9% and has risen by 4 points: pricing power is holding.
• Analysts expect revenue to grow about 23.6% a year over the next years.
• Revenue grew 16.4% a year over the last 3 years.

Next earnings report: 2026-10-28

Questions

What grade does Alphabet Inc. (GOOGL) have?

In our weekly check, Alphabet Inc. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 18 pass, warnings: 3, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of GOOGL stock?

This week's biggest flags for Alphabet Inc.: Margins expected to shrink, Deep past fall, Slow recovery after falls. In total 7 of 25 checks show a warning or a red flag.

What does Alphabet Inc. do?

Alphabet Inc. is a Technology company (Internet Content & Information) based in the United States, listed on NASDAQ as GOOGL.

When does Alphabet Inc. report earnings next?

The next earnings report is expected on 2026-10-28. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

Open the full analysis