‘Not Running Scared’: Execution Justifies the Price for Alphabet Stock, Says Investor

It can be hard to move the needle when it comes to the larger stocks on the market, as their massive size can absorb both shocks and sparks that might have a dramatic impact on smaller firms. And yet, the megabucks that Alphabet (NASDAQ:GOOG) is planning to spend on capex this year have clearly struck a nerve.

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The company is just about even year-to-date, though it has been trending downward since detailing its Q4 and full-year 2025 numbers earlier this month. Despite bringing in over $100 billion dollars in revenue for the second straight quarter, the market was fixated on the $175 to $185 billion that the company management is planning to shell out on capex this year.

Unlike many of her peers, investor Julia Ostian isn’t scared off by the large expenditures, as she believes that the company’s “robust execution” makes GOOG a compelling long-term investment.

Ostian is embracing the Google Cloud’s $240 billion backlog, arguing that its recent 48% year-over-year “revenue surge” provides ample evidence that the money is being put to good use.

Moreover, she points out that Alphabet is succeeding in “embedding AI into revenue-delivering segments,” which she further explains is the main reason that she isn’t too worried about the capex numbers.

Ostian also notes that Alphabet, despite its gargantuan size, has been able to deliver accelerating growth. She cites the company’s $113.8 billion in Q4 revenues, an increase of 18% from the previous year, and well over the 12% year-over-year growth the company delivered in Q1 2025.

“Alphabet is proving that it can maintain high levels of efficiency even while spending heavily,” adds Ostian.

And that gives her plenty of confidence that Alphabet will be able to deftly navigate its backlog, eventually monetizing it. Simply put, building out its compute power is part of the plan to capitalize on the $240 billion in potential sales.

Though she doesn’t dismiss concerns that the market has gotten overheated, for those planning on sticking around for the long haul, she believes that GOOG is a strong opportunity.

“Underestimating a data giant is rarely a winning strategy,” says Ostian, who is giving GOOG a Buy rating. (To watch Julia Ostian’s track record, click here)

That’s the sentiment on Wall Street as well, where 12 Buys and a single Hold combine to give GOOG a Strong Buy consensus rating. Its 12-month average price target of $384.45 points to an upside of 24%. (See GOOG stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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