Massive Breakout For Mighty GOOGL

This is a fanulous chart with every kind of buy signal (Coppock, moving averages, punchy new high breakout) and the shares look set to move dramatically higher. Alphabet, the parent company, has over 183,000 employees. I don’t know what they do, but with research spending in the 12 months to June 2025 of nearly $53bn, many must work in r&d. In addition, the company expects to spend $85bn on capital expenditure, mostly on data centres, in 2025. Together, that means Alphabet will be investing almost $140bn in 2025 on growing the business.

This is the main reason why it is growing. Excitingly for shareholders, Alphabet, with operating cash flow over the last 12 months of over $133bn, can fund this gigantic expenditure without needing to raise fresh equity, so all the benefits flow to existing shareholders.

Alphabet is a business which is firing on all cylinders and is crucial to the way we humans consume and access technology.

Q2 was a standout quarter for us with robust growth across the company. As you saw at I/O, we are leading at the frontier of AI and shipping at an incredible pace. AI is positively impacting every part of the business, driving strong momentum. This quarter, search delivered double-digit revenue growth. Our new search features continue to perform well. AI mode has launched in the US and India and is going well, while AI overviews now have over two billion monthly users across more than two hundred countries and territories and forty languages. I’ll give some more details on search in a moment.

We continue to see strong performance in YouTube as well as subscriptions, reflecting great momentum across these high-growth businesses. In the US, Shorts now earn as much revenue per watch hour as traditional in-stream on YouTube, and in some countries, it now even exceeds in-stream’s rate. Cloud had another great quarter of strong growth in revenues, backlog, and profitability. Annual revenue run rate is now more than $50 billion. We are seeing significant demand for our comprehensive AI product portfolio. Of course, this is all possible because of the long-term investments we have made in our differentiated full-stack approach to AI.

This spans AI infrastructure, world-class research, models and tooling, and our products and platforms that bring AI to people all over the world. I’ll briefly touch on the AI stack before turning to quarterly highlights. First, AI infrastructure. We operate the leading global network of AI-optimized data centers and cloud regions. We also offer the industry’s widest range of TPUs and GPUs along with storage and software built on top. That’s why nearly all Gen AI unicorns use Google Cloud, and it’s why a growing number, including leading AI research labs like SAFE Superintelligence and Physical Intelligence, use TPU specifically. Our AI infrastructure investments are crucial to meeting the growth and demand from cloud customers.

Next, world-class AI research, including models and tooling. We continue to expand our Gemini 2.5 family of hybrid reasoning models, which provide industry-leading performance in nearly every major benchmark. In addition to improving our popular workhorse model, Flash, we debuted an extremely fast Flash Lite version. We achieved gold medal level performance in the International Math Olympiad using an advanced version of Gemini with Deep Tech. We can’t wait to bring DeepThink to users soon. We have some of the best models available today at every price point. Our 2.5 models have been a catalyst for growth, and nine million developers have now built for Gemini. I also want to mention VO3, our state-of-the-art video generation model.

It’s been a viral hit with people sharing clips created in the Gemini app and with our new AI filmmaking tool, Flow. Since May, over seventy million videos have been generated using VO3, and we recently introduced a feature in the Gemini app to turn photos into videos, which people absolutely love. It’s also rolling out to Google Photos users starting today. Third, our products and platforms. We are bringing AI to all our users and partners through surfaces like Workspace, Grow, and Mold. The growth in usage has been incredible. At I/O in May, we announced that we processed four hundred and eighty trillion monthly tokens across our surfaces.

Since then, we have doubled that number, now processing over nine hundred and eighty trillion monthly tokens—a remarkable increase. The Gemini app now has more than four hundred and fifty million monthly active users, and we continue to see strong growth in engagement, with daily requests growing over fifty percent from Q1. In June alone, over fifty million people used AI-powered meeting notes in Google Meet. And powered by VO3, our new short video product in Workspace called Google Meets reached nearly one million monthly active users. This month at Samsung Galaxy Unpacked, we announced new Android and AI features that are available on Samsung’s latest devices.

And we are really pleased with the growth in subscriptions, which got a boost from our Google AI Pro and Ultra plans. Now some key highlights from Search, Cloud, YouTube, and Waymo for the quarter. First up, this is an incredibly exciting moment for Search. We see AI powering an expansion in how people are searching for and accessing information, unlocking completely new kinds of questions you can ask Google. Overall queries and commercial queries on search continue to grow year over year, and our new AI experiences significantly contributed to this increase in usage. We are also seeing that our AI features cause users to search more as they learn that search can meet more of their needs.

[Google I/O is an annual conference hosted by Google in the spring, where the company unveils new products, technologies, and innovations in AI, Android, and other areas to a global audience of developers, creators, and technology enthusiasts. The event features keynotes, hands-on sessions, and technical content designed to update developers on the latest advancements and help them build and improve applications within the Google ecosystem.]

[Google Deep Think is an advanced, experimental reasoning mode in Google’s Gemini AI models, specifically Gemini 2.5 Pro, that improves complex problem-solving abilities by exploring and evaluating multiple ideas simultaneously. This “parallel thinking” approach allows Gemini to perform better on tasks requiring creativity, strategic planning, and complex scientific or mathematical discovery. Deep Think is a new capability, and users can enable it in Gemini to test its newest advanced reasoning capabilities, providing feedback for its development.]

Sundar Pichai, CEO, Alphabet, Q2 2025, 23 July 2025

Everywhere you look at Alphabet, they are leveraging AI to improve performance and grow the business dramatically. There is no question that Alphabet is one of the most remarkable businesses on the planet and a must-have investment for anyone with a substantial portfolio. It is already a Top 20 constituent.

Share Recommendations

Alphabet. GOOGL

Applovin. APP

I am adding Applovin to the Top 20 portfolio, taking the number of shares to 26. It is a sensational business with super exciting prospects.

Q2 2025 was another great quarter, driven by continued strength in gaming advertising. Our growth comes from improved technology, increased demand as well as from supply side expansion. The MAX marketplace creates the supply that drives our growth as well as the growth in the market. As marketing technologies in the industry continue improving, we expect the supply will keep growing quickly. While we don’t disclose exact MAX marketplace growth rates, it has consistently been double digits, far outpacing growth in the in-app purchasing gaming market.

The ongoing improvement in our models drive sustainable growth rates beyond the market growth rates, while we continue to expand our dominant leadership position. Based on all the opportunity in front of us in our core market, we are confident we can sustain 20% to 30% year-over-year growth driven by just gaming. However, what gets us more excited now than ever in our history before is the opportunity to really expand outside our core market.

Adam Foroughi, CEO and co-founder, Applovin, Q2 2025, 6 August 2025

They have huge plans.

Recently, we took the first step towards opening up our platform broadly, quietly launching our new AXON ads manager, our self- service portal, which will serve as the foundation for our next decade of growth. Our ads manager has many benefits. It puts day-to- day controls directly in advertisers’ hands, reducing friction. It enables credit card billing, eliminating the hassle of monthly invoicing. It provides the architecture for agents that can eventually automate every workflow. It establishes the framework for automatically generated ads. It simplifies onboarding through our recently launched Shopify app. It deepens integrations with attribution providers, giving customers more accurate reporting.

With the rollout going smoothly, we were ready to widen access. On October 1, 2025, we plan to open the AXON ads manager on a referral basis, perfectly timed for the holiday season. Feedback from these partners will guide our global public launch in the first half of 2026. To date, web advertising campaigns have been limited to the United States. On October 1, we plan to open our platform to most major international markets.

Now stepping back, we have spent the last decade assembling the pieces, reach of more than 1 billion users, best-in-class optimization and now a self-service interface. Together, they position us to help any business of any size anywhere in the world grow profitably. That is good for our partners. It’s good for economies around the world, and it’s great for job creation. The opportunity is so big that we will be launching the platform under its own brand, AXON. Once AXON is fully open next year, we plan to begin paid marketing to recruit new advertisers, which will drive predictable compounding growth.

Adam Foroughi, CEO and co-founder, Applovin, Q2 2025, 6 August 2025

Applovin is a class act and classic Top 20 material.

We have been building performance-driven advertising products longer and better than most anyone. Operating at our current scale with an incredibly small amount of advertiser relationships highlights the magnitude of the opportunity ahead. Our strategy is simple: build world-class products, launch them when they meet our high bar and compound from there. Patient, disciplined execution produces durable success, and we hope our track record gives you the same confidence we have in our future. We’re incredibly excited about what’s ahead.

Adam Foroughi, CEO and co-founder, Applovin, Q2 2025, 6 August 2025