Should I buy Alphabet stock in 2025?

What is Alphabet?

How much is the Alphabet stock?

The price of Alphabet stock is rising this week. As of now, Alphabet shares are trading at approximately $172.00 USD, representing a 2.63% increase over the last 24 hours and a solid gain for the week.

A stock beta of 1.24 indicates that Alphabet is moderately more volatile than the overall market. With recent momentum and strong financial fundamentals, Alphabet continues to attract attention from New Zealand investors seeking growth opportunities in the tech sector.

Our full analysis on the Alphabet stock

Having closely reviewed Alphabet Inc.’s latest quarterly financial results, performance trends spanning the past three years, and a wide array of technical, market, and peer comparisons via our proprietary analysis models, we see a stock at a pivotal juncture. Utilising updated financial indicators and advanced algorithmic insights, Alphabet (GOOGL) stands out for its combination of fundamental strength and emerging momentum. So, why might Alphabet stock once again become a strategic entry point into the global technology sector in 2025?

Recent Performance and Market Context

Alphabet’s share price has exhibited constructive resilience amid a year marked by sector rotations and macroeconomic recalibration. As of May 30, 2025, GOOGL trades at approximately $172, reflecting a 9.12% drawdown year-to-date, largely a function of broader market corrections rather than company-specific issues. Notably, performance over the last three years still shows a robust annualized return against the S&P 500 Technology index, solidifying its status as a quality growth anchor within diversified portfolios.

Several positive developments have supported sentiment and set the stage for renewed upward movement:

• Q1 2025 earnings far exceeded expectations, with revenue up 12% YoY and EPS up 49% YoY.
• Launch of a quarterly dividend in 2024, augmented by a recent 5% increase, attracts long-term capital and broadens the shareholder base.
• Ongoing expansion of core AI capabilities—most recently, Gemini AI and AI Overviews—positions Alphabet as a prime beneficiary of the accelerating global digital transformation.
• The macroeconomic environment for global tech remains robust, with continued secular tailwinds in AI, cloud adoption, and digital consumer behavior.

These factors, combined with Alphabet’s demonstrated ability to outpace peers in both innovation and scale, have reignited optimism among institutional investors and reinforced Alphabet’s reputation as a generational technology leader.

Technical Analysis

From a technical standpoint, Alphabet displays a series of positive signals that reinforce the emerging thesis for entry:

• Relative Strength Index (RSI) stands at 61.6—just below overbought territory—suggesting the recent rally has room to extend without imminent exhaustion.
• The MACD (12,26,9) is comfortably positive at 3.30, underpinning short-term momentum aligned with longer-term bullish structures.
• Momentum structure is highly favorable: The share price sits above the 20- and 50-day moving averages, and just below the key 100-day ($175 resistance) and 200-day moving averages, having recently registered a “golden cross.”
• Support and resistance levels are clearly defined: $164 is the nearest strong support; $175 and $187 serve as resistance, with the former aligning with both 100- and 200-day MAs, forming a classic “breakout-on-approach” scenario.

Notably, the recent golden cross (May 27, 2025)—when the 50-day moved above the 200-day MA—supports the view that Alphabet may be entering a new bullish cycle. Given robust market volume and the absence of significant technical overhead until $187, any closure above $175 could confirm strong medium-term upside.

Fundamental Analysis

Alphabet’s fundamentals underline the investment case with remarkable clarity:

• Revenue in Q1 2025 reached $90.23 billion (up 12% YoY), net income surged 46% YoY to $23.66 billion, and EPS beat consensus by nearly 40%.
• Google Cloud now accounts for $12.3 billion (+28% YoY), with momentum accelerating across enterprise and AI workloads, while YouTube and Search divisions continue to post double-digit growth.
• Despite market capitalization of $2.1 trillion, the forward P/E of just 18.5 and a PEG ratio of 1.32 are notably attractive for a business with Alphabet's cash generation, growth trajectory (12–14% annualised), and scale. This discount to high-growth peers amplifies the argument for valuation upside.
• Structural strengths include dominant global market share in search and digital advertising, pioneering advances in AI (Gemini, AI Overviews, cloud infrastructure), and a balance sheet capable of supporting $75 billion in capital expenditures this year.
• Brand equity and data assets remain unrivaled, supporting continued innovation in frontier technologies.

Comparative advantages—from unique data troves ideal for AI training to an ecosystem seamlessly integrated across hundreds of markets—translate into enduring profitability and a defensible moat over competitors such as Amazon and Microsoft.

Volume and Liquidity

Sustained, elevated trading activity further substantiates market conviction:

• Average daily volume of 47.2 million shares over the past 90 days underscores extraordinary liquidity, ensuring that both institutional and individual investors can transact with negligible slippage.
• With a public float of 5.80 billion shares and substantial institutional ownership, Alphabet’s stock structure lends itself to dynamic, efficient price discovery.
• This liquid environment supports dynamic valuation, particularly as large capital allocators pivot back to “AI first” mega-caps in the face of sectoral volatility, reinforcing resilience against idiosyncratic shocks.

Catalysts and Positive Outlook

A series of powerful catalysts reinforce the thesis that Alphabet appears positioned for substantial upside in the coming quarters:

• AI & Cloud Leadership: Record capital investment ($75B planned for 2025) will further entrench Alphabet’s digital infrastructure and cement its dominance as both an AI frontrunner and indispensable cloud provider.
• Landmark Innovations: Accelerated deployment of Gemini AI across Google’s consumer and enterprise stack, alongside expansion of AI Overviews to 1.5 billion users and 140 countries, enhances user engagement and unlocks adjacent revenue streams.
• Strategic Acquisitions: The $32B Wiz acquisition significantly bolsters Alphabet’s security capabilities, attracting new client segments to Google Cloud and advancing the group’s ability to serve the world’s largest organisations.
• ESG and Sustainability Commitments: Alphabet continues to lead in data-centre energy efficiency, green infrastructure, and responsible AI—a strategy which resonates with a broad investor base and future-proofs the brand against regulatory change.
• Analyst Consensus: The average price target sits at $224, suggesting ~30% upside from current levels, with positive revisions likely as earnings beats persist and capital allocations accelerate.
• Favourable Regulation and Macro Context: Tech remains a focus for policymakers, but Alphabet’s proactive engagement and diversified business lines position it well to navigate sector-specific headwinds while capturing the global digitisation mega-trend.

Investment Strategies

Alphabet’s stock configuration offers attractive arguments for a wide spectrum of investment horizons:

• Short-term: Technical structure suggests an appealing entry at or above the $170–$175 range, with clear support and growing momentum ahead of upcoming product and financial catalysts.
• Medium-term: Investors seeking to ride the ongoing AI and cloud tailwinds have the advantage of participating early in what may be a renewed earnings growth cycle, with sharp upward potential on confirmation of continued revenue acceleration.
• Long-term: For those with a multi-year horizon, Alphabet’s dominant market share, exceptional balance sheet, and relentless innovation create a virtuous cycle supporting compounding returns, even in the face of periodic regulatory or competitive disruptions.

For NZ-based investors, access via international brokers or managed funds makes GOOGL fully investable, with strong liquidity that supports core portfolio allocations. Optimal positioning may be achieved following minor short-term corrections or as the stock consolidates above the $175 resistance, ideally ahead of upcoming earnings or product announcements.

Is it the Right Time to Buy Alphabet?

The evidence points decisively to a company firing on all cylinders: robust double-digit growth, sector-best profitability, an expanding AI and cloud moat, continued operational outperformance, and a technical breakout with supportive market dynamics. The fundamentals justify renewed interest at today’s valuation, with structural strengths potentially driving Alphabet into a new bullish phase in 2025. With Wall Street consensus targets projecting significant upside and ongoing momentum across all key business lines, Alphabet seems to represent an excellent opportunity for investors seeking resilient exposure to the technology sector’s next chapter of growth.

As Alphabet continues to deliver on innovation and operational excellence, and with market conditions increasingly supportive, the current environment offers a compelling context for serious consideration—highlighting this iconic stock as a cornerstone in the evolving AI-driven global technology landscape.

How to buy Alphabet stock in NZ?

Buying Alphabet (GOOGL) shares online has become simple, secure, and accessible for New Zealand investors thanks to regulated online brokers. You can invest in Alphabet directly by purchasing shares (spot buying), or trade price movements using Contracts for Difference (CFDs). Each method offers unique benefits, depending on your objectives and risk appetite. Whether you prefer outright ownership or leveraged trading, the process starts with choosing the right broker—explore our detailed broker comparison further down the page to find the platform that best fits your needs.

Spot buying

A cash purchase (spot buying) of Alphabet stock means you own actual shares, giving you voting rights and eligibility for dividends. You pay the full share price plus any brokerage fees, usually a fixed commission per order (typically NZD $5–$20, depending on the broker).

Example

If Alphabet shares are trading at USD $172 (approx. NZD $280, using a recent exchange rate), a NZD $1,000 investment allows you to buy about 3 shares (NZD $840 for 3 shares), plus a NZD $5 brokerage fee. The remaining NZD $155 stays as uninvested cash or can be used for future trades.

✔️ Gain scenario

If Alphabet's share price rises 10% (from $172 to about $189 USD), your 3 shares are now worth approximately NZD $924.
Result: That's a NZD $84 gain (+10%), before local currency effects and taxes.

Trading via CFD

CFD trading allows you to speculate on Alphabet’s share price without owning the underlying shares. You can profit from both rising and falling prices, and employ leverage. Fees include the spread (difference between buy/sell price) and overnight financing costs if holding positions long-term.

Example

With a NZD $1,000 deposit and 5x leverage, you control a position worth NZD $5,000 on Alphabet shares. If the stock price rises 8%, your gain is amplified:
✔️ Gain scenario: 8% × 5 = 40% profit, or NZD $400 on your NZD $1,000 margin (excluding spreads or overnight fees).

Final advice

Before investing in Alphabet shares, it's essential to compare brokers’ fees, trading conditions, and the services they offer—every dollar saved on commissions adds to your returns. Your choice between cash buying and CFDs depends on whether you seek long-term ownership and dividends, or prefer short-term speculating with leverage. Explore our broker comparison below to make a confident, informed decision tailored to your investing strategy.

Our 7 tips for buying Alphabet stock

The latest news about Alphabet

Alphabet posted exceptional Q1 2025 results, exceeding all expectations and highlighting robust core business growth. In its most recent earnings report, Alphabet delivered $90.23 billion in revenue (+12% YoY) and net income of $23.66 billion (+46% YoY), with earnings per share at $2.81 versus $2.01 expected. This significant beat was driven by sustained double-digit expansions in Google Search, a 28% YoY surge in Google Cloud to $12.3 billion, and strong YouTube performance. These numbers exceeded consensus estimates and confirmed Alphabet’s broad-based momentum, a factor attracting attention among New Zealand tech-sector analysts and local institutional investors, who often calibrate their portfolio allocations based on the resilience of global technology leaders.

Google’s aggressive expansion of AI-driven features, especially AI Overviews, is reaching unprecedented global scale, including key Asia-Pacific markets. The company announced last week that AI Overviews now reach over 1.5 billion users monthly, with recent expansion into 140 countries and 15 languages that directly impact New Zealand’s multilingual and technologically engaged population. This broad deployment not only reinforces Google’s indispensable role in digital infrastructure but enhances the relevance of its search and ecosystem products for Kiwi users and businesses, many of whom are increasingly leveraging Google Workspace and Cloud as part of their digital transformation strategies.

Alphabet’s commitment to AI and cloud infrastructure investment is strengthening its technological leadership and long-term growth profile. With a planned $75 billion in capital expenditure for 2025—29% above Wall Street expectations—Alphabet is focusing heavily on AI, cloud, and security enhancements, including the $32 billion acquisition of Wiz, a leading cybersecurity startup. These moves have garnered positive outlooks from local New Zealand tech industry consultants, who see Alphabet’s focus as vital to the reliability and innovation of cloud services upon which a growing number of New Zealand firms and public sector entities depend. Such strategic investments signal a durable growth trajectory that benefits both global and regional stakeholders.

Technical momentum supports bullish sentiment, highlighted by a recent “golden cross” and increased price targets from major analysts. Alphabet’s stock climbed 2.63% on May 27 after crossing above the 200-day moving average, a strong technical buy signal that has seen the RSI hold in neutral territory (61.61) and MACD remain positive. The analyst consensus target stands at $224, roughly 30% above current levels. This technical backdrop and analyst optimism are particularly relevant for New Zealand-based investors seeking global exposure, as they look for sustained momentum and reduced volatility in key portfolio holdings.

Alphabet’s first-ever dividend policy and tax considerations are increasingly relevant for New Zealand investors. From Q1 2025, Alphabet initiated a quarterly dividend of $0.84, with a recent 5% increase, creating a modest yield of 0.49%. For Kiwi investors, dividends are subject to US withholding tax (typically 15% due to NZ-US tax treaty) and local taxation, making Alphabet more attractive to yield-seeking investors and those managing retirement accounts via international brokers. This new income component, alongside Alphabet’s robust growth drivers, further enhances the company’s suitability for diversified New Zealand portfolios.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.