Alphabet Inc - C (GOOG)

Alphabet Inc. Overview

Alphabet Inc. (Nasdaq; ticker: GOOG) is the parent holding company of Google and other subsidiary companies such as Fitbit, Google Ventures, Google Fiber, Nest, and more. Alphabet is currently the fifth largest company in the world according to market capitalisation (US$2.01 trillion). As a multinational technology company focussed on internet-related services and products, Google operates in over 200 countries worldwide, with more than 4 billion active users benefitting from its services.

The company’s most widely known product is the Google Search engine, the world's most popular online search engine, with billions of daily searches executed. In addition, Google Ads and Google AdSense are services that have changed the modern online advertising landscape. Google also owns and develops Android, the world’s most used mobile operating software and a direct rival of Apple’s iOS.

In the last few years, Alphabet (via Google) has invested in developing Artificial Intelligence (AI), leading to the release of Gemini - directly competing with ChatGPT for a share of this newly created market. Google’s management also focusses on improving its cloud computing capabilities via the Google Cloud division.

Why Trade Alphabet Inc. (GOOG) Shares?

Alphabet Inc. released its Q4 24 earnings report in February 2025. According to the report, Alphabet’s earnings per share (EPS) came in at US$2.15, slightly better than US$2.13 expected by analysts. While Alphabet’s Q4 earnings recorded a 12% increase on an annualised basis, coming in at US$96.47 billion, the data fell short of analysts’ expectations, who had forecasted a number closer to US$96.56 billion.

Commenting on the Q4 earnings report, Alphabet’s CEO, Sundar Pichai, stated: ‘Q4 was a strong quarter driven by our leadership in AI and momentum across the business. We are building, testing, and launching products and models faster than ever and making significant progress in computing and driving efficiencies’.

According to Alphabet’s management, the company will invest approximately US$75 billion in capital expenditures in 2025. Economists note that Alphabet will likely invest in upgrading its technical infrastructure as servers and data centres could assist the growth of Google Cloud, Google Services and DeepMind. Such a move could potentially improve Alphabet’s position against rivals Microsoft (MSFT) and Amazon (AMZN).

What Influences the Price Of GOOG?

Earnings Reports

Earnings reports are published by most companies every quarter of the year. An earnings release reveals a snapshot of the company’s financial data and reflects its financial position at the end of the relevant quarter. Apart from data such as revenue, EPS and costs, the report includes forward guidance. Forward guidance indicates how the company intends to utilise its resources in the following quarter(s), including plans of new investments, reducing costs, as well as other strategy adjustments.

A strong earnings report for GOOG with sets of data that exceed market expectations could play a role in bolstering its share price, as investors may feel confident regarding the company’s future valuation. On the contrary, an earnings report with figures below market forecasts may lead the share’s price to drop as investors may question the company’s choices.

Market Trends

Alphabet’s management has vowed to spend US$75 billion this year on technical infrastructure improvements. It’s no secret that AI has played a significant role in morphing the strategies of the largest tech companies in the world, such as Meta (META), Microsoft, Nvidia (NVDA) and others, which form part of what economists call the ‘Magnificent Seven’ Index.

The onslaught of AI with tools such as ChatGPT has attracted the attention of many investors across the world, boosting the valuation of the Magnificent Seven Index. Google has entered the competition by releasing Gemini, an LLM model similar to ChatGPT, and intends to integrate AI into all Google Services to improve the user experience.

Regulatory Challenges

Alphabet via Google services and products is active in most countries. Although this translates into a significant market share, it also means Google is obliged to conform to various regulatory frameworks. One of the most known disputes is the European Union’s fine against Google, as the company appeared to not comply with GDPR regulations. This saw the company’s share price drop 2.5% shortly after.

Various digital regulations and AI governance rules may impact the company’s operations. In case of regulatory challenges or tax law changes, Google would have to adjust its strategy, which could mean more expenses; this is something that traders and investors should take into consideration.

Economic Conditions

The global economic landscape will likely affect any company’s share price, GOOG included. Major central banks - such as the Federal Reserve (Fed) in the US, the Bank of England (BoE) in the UK and the European Central Bank (ECB) in the eurozone - can have a significant impact on economies as they adjust their monetary policies, including interest rates in order to avoid recession or overheating local economies. Therefore, money flow is adjusted as central banks increase or decrease borrowing costs. High interest rates may mean increased costs of investment, a case that could send investors looking for better solutions to serve their financial plans. Low interest rates may mean that investors have access to funds they are willing to use to buy shares of various companies.

How To Trade Alphabet Inc. (GOOG) Share CFDs?

Alphabet, as the parent company of Google, is one of the largest companies in the world, offering innovative technology and services to billions of clients globally. Despite occasional setbacks, Alphabet remains one of the key players in the global tech market and a member of the ‘Magnificent Seven’.

To begin trading Share CFDs (Contracts for Differences) with FP Markets, you would have to be able analyse stocks using fundamental analysis as well as the technical analysis. If you do not feel comfortable with your level of trading knowledge, consider visiting the FP Markets Academy where you can find a wide range of educational materials such as videos and articles to help you upgrade your skills and build a comprehensive trading plan.

It should be noted that CFDs on shares and physical shares are not the same thing. By investing in a company’s physical shares, you buy a ‘part’ of the company. By trading Share CFDs, you invest in a leveraged financial derivative whose value is determined by the underlying asset’s value performance of the stock.