Alphabet Inc. (GOOG, GOOGL) reported 12% revenue growth during Q1 2025 as Google Cloud revenue grew 28% to $12.3 billion and Search earned $50.7 billion. YouTube continued its growth pattern during the year as the platform experienced a 20% increase in Shorts and  podcasts viewer numbers.

AI Leadership: Gemini 2.5 Takes the Lead

Polymarket betting data indicates that Google’s Gemini 2.5 AI model holds the number one position among all available models. The model functions as a core system for Search platforms, YouTube and Google Cloud to handle billions of user  interactions while solidifying Google’s position as an applied AI leader.

Shareholder Confidence Remains High

 Alphabet’s financial strength and growth prospects received a significant boost through a 5% dividend increase and a  $70 billion stock repurchase program.

Valuation: Growth at a Discount

Alphabet stock performs worse than the general market since April 25 with a decrease of 0.5%  while S&P 500 showed a 6.5% increase. The forward PEG ratio of Alphabet  shows more than 10% improvement from sector averages according to analysts.

A Top Long-Term AI Play

Alphabet demonstrates market-leading AI technologies alongside substantial revenue expansion and  discounted valuation which analysts identify as a prime long-term investment opportunity during the AI megacycle.