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Alphabet Hits an All-Time High: More Rally Ahead for ETFs?
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Alphabet Inc. (GOOGL - Free Report) is trading at all-time highs, thanks to artificial intelligence and cloud initiatives. The stock hit an all-time high of $210.52 on Aug. 25, 2025. Google Cloud is benefiting from accelerated growth across AI infrastructure and Generative AI Solutions. AI Overviews now reach more than 2 billion users per month.It is now driving over 10% more queries globally.
Alphabet’s Q2 results confirmed Google Search, YouTube, and Cloud as dependable growth drivers, while heavy AI investments are already generating partnerships and fresh revenue streams.
Partnerships
Alphabet has been growing rapidly in the booming cloud-computing market. Google Cloud is benefiting from its partnership with the likes of NVIDIA and PayPal.Recently, Alphabet reportedly entered into a six-year cloud computing agreement with Meta Platforms valued at over $10 billion, per Reuters, as quoted on Yahoo Finance. The deal marked Google’s second major partnership in recent months, following a similar arrangement with OpenAI.
Apple is also reportedly in early talks with Alphabetabout embedding Gemini AI models into a redesigned Siri, per a Bloomberg article, as quoted on Yahoo Finance. The move could mark a major shift in Apple’s strategy toward outsourcing more artificial intelligence technology.
The potential Apple-Google deal could give Alphabet access to one-third of the global smartphone market, when combined with Samsung’s integration. Meanwhile, Waymo, Alphabet's autonomous driving unit, has been valued at $173 billion.
Waymo has seen a considerable growth lately. The self-driving ride hailing service has over 700,000 recorded monthly paid trips as of March 2025, a 55-times rise from August 2023.
Second-Quarter 2025 Earnings Results
Alphabet’s second-quarter 2025 earnings of $2.31 per share beat the Zacks Consensus Estimate by 7.44% and grew 22.2% year over year. Net revenues, excluding total traffic acquisition costs were $81.72 billion, which surpassed the consensus mark by 2.2%.
In second-quarter 2025, Google Cloud revenues increased 31.7% year over year to $13.62 billion. The figure beat the Zacks Consensus Estimate by 4.24%.Google Services revenues increased 11.7% year over year to $82.54 billion and accounted for 85.6% of total revenues, beating the Zacks Consensus Estimate by 3.28%.
Google advertising revenues rose 10.4% year over year to $71.34 billion and accounted for 74% of total revenues. The figure beat the consensus mark by 3%.Google subscriptions, platforms and devices revenues, were $11.2 billion in the second quarter, up 20.3% year over year. The figure beat the consensus mark by 4.72%.
Valuation
Alphabet shares are up 9.7% in the year-to-date period and 24.6% over the trailing 12-month period. Stocks in the underlying Zacks Internet – Services Market sub-industry are up 10.26% while the Zacks Computer & Technology sector is up 12.4% in the year-to-date period. Over the past year, the Zacks sub-industry and the sector Alphabet hails from are up 26.1% and 22.3%, respectively.
The stock trades at an EV/EBITDA multiple of 17.6X versus 14.1X possessed by Computer Software-Services Market. The stock is currently trading at 20.9X forward 12-month earnings, which compares to 21.47X for the Zacks sector and 25.32X for the S&P 500 index. Over the past five years, the stock has traded as high as 24.41X and as low as 11.77X, with a 5-year median of 18.19X. This indicates that the stock is not highly overvalued.
Price Target
Based on short-term price targets offered by 51 analysts, the average price target for Alphabet comes to $220.43. The forecasts range from a low of $180.00 to a high of $250.00. The average price target represents an increase of 5.72% from the last closing price of $208.50.
ETFs in Focus
Against this backdrop, below we highlight a few winning exchange-traded funds (ETFs) that have high exposure to Alphabet. These ETFs could be your go-to options if you like Alphabet’s recent journey.
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report) – Alphabet’s exposure 14%
Vanguard Communication Services ETF (VOX - Free Report) – 13%
iShares Global Comm Services ETF (IXP - Free Report) – 12.9%
Communication Services Select Sector SPDR Fund (XLC - Free Report) – 11%
Image: Bigstock
Alphabet Hits an All-Time High: More Rally Ahead for ETFs?
Alphabet Inc. (GOOGL - Free Report) is trading at all-time highs, thanks to artificial intelligence and cloud initiatives. The stock hit an all-time high of $210.52 on Aug. 25, 2025. Google Cloud is benefiting from accelerated growth across AI infrastructure and Generative AI Solutions. AI Overviews now reach more than 2 billion users per month.It is now driving over 10% more queries globally.
Alphabet’s Q2 results confirmed Google Search, YouTube, and Cloud as dependable growth drivers, while heavy AI investments are already generating partnerships and fresh revenue streams.
Partnerships
Alphabet has been growing rapidly in the booming cloud-computing market. Google Cloud is benefiting from its partnership with the likes of NVIDIA and PayPal.Recently, Alphabet reportedly entered into a six-year cloud computing agreement with Meta Platforms valued at over $10 billion, per Reuters, as quoted on Yahoo Finance. The deal marked Google’s second major partnership in recent months, following a similar arrangement with OpenAI.
Apple is also reportedly in early talks with Alphabetabout embedding Gemini AI models into a redesigned Siri, per a Bloomberg article, as quoted on Yahoo Finance. The move could mark a major shift in Apple’s strategy toward outsourcing more artificial intelligence technology.
The potential Apple-Google deal could give Alphabet access to one-third of the global smartphone market, when combined with Samsung’s integration. Meanwhile, Waymo, Alphabet's autonomous driving unit, has been valued at $173 billion.
Waymo has seen a considerable growth lately. The self-driving ride hailing service has over 700,000 recorded monthly paid trips as of March 2025, a 55-times rise from August 2023.
Second-Quarter 2025 Earnings Results
Alphabet’s second-quarter 2025 earnings of $2.31 per share beat the Zacks Consensus Estimate by 7.44% and grew 22.2% year over year. Net revenues, excluding total traffic acquisition costs were $81.72 billion, which surpassed the consensus mark by 2.2%.
In second-quarter 2025, Google Cloud revenues increased 31.7% year over year to $13.62 billion. The figure beat the Zacks Consensus Estimate by 4.24%.Google Services revenues increased 11.7% year over year to $82.54 billion and accounted for 85.6% of total revenues, beating the Zacks Consensus Estimate by 3.28%.
Google advertising revenues rose 10.4% year over year to $71.34 billion and accounted for 74% of total revenues. The figure beat the consensus mark by 3%.Google subscriptions, platforms and devices revenues, were $11.2 billion in the second quarter, up 20.3% year over year. The figure beat the consensus mark by 4.72%.
Valuation
Alphabet shares are up 9.7% in the year-to-date period and 24.6% over the trailing 12-month period. Stocks in the underlying Zacks Internet – Services Market sub-industry are up 10.26% while the Zacks Computer & Technology sector is up 12.4% in the year-to-date period. Over the past year, the Zacks sub-industry and the sector Alphabet hails from are up 26.1% and 22.3%, respectively.
The stock trades at an EV/EBITDA multiple of 17.6X versus 14.1X possessed by Computer Software-Services Market. The stock is currently trading at 20.9X forward 12-month earnings, which compares to 21.47X for the Zacks sector and 25.32X for the S&P 500 index. Over the past five years, the stock has traded as high as 24.41X and as low as 11.77X, with a 5-year median of 18.19X. This indicates that the stock is not highly overvalued.
Price Target
Based on short-term price targets offered by 51 analysts, the average price target for Alphabet comes to $220.43. The forecasts range from a low of $180.00 to a high of $250.00. The average price target represents an increase of 5.72% from the last closing price of $208.50.
ETFs in Focus
Against this backdrop, below we highlight a few winning exchange-traded funds (ETFs) that have high exposure to Alphabet. These ETFs could be your go-to options if you like Alphabet’s recent journey.
Fidelity MSCI Communication Services Index ETF (FCOM - Free Report) – Alphabet’s exposure 14%
Vanguard Communication Services ETF (VOX - Free Report) – 13%
iShares Global Comm Services ETF (IXP - Free Report) – 12.9%
Communication Services Select Sector SPDR Fund (XLC - Free Report) – 11%
MicroSectors FANG+ ETN (FNGS - Free Report) – 9.7%