Alphabet Inc. (GOOGL) stock has seen struggles in 2025 thus far compared to its magnificent-seven rivals, Microsoft and Meta. Alphabet shares are in a risky position on their daily price chart. Experts are worrying that the Google developer’s revenue could dip by 56%, tanking shares. GOOGL stock took a hit earlier this month, reversing a 20% climb down to just a 6% one in 30 days, after Apple’s announcement of looking into its own AI search engine. Alphabet’s partnership with Apple is a very profitable one, and should the partnership be cut or revenue from it drop, it could cause Alphabet stock to fall further.
Fortunately, Alphabet’s Google has been making strides in a different direction in order to bring in more revenue. The company faced concerns about tariffs back in April that harmed GOOGL and other top stocks. Now, Google is looking to advance its powerful Pixel smartphone software development in India. Indeed, Google began direct online sales of its popular hardware devices in India on Thursday. These include Pixel phones, watches, and earbuds, ahead of an anticipated launch of its first physical stores in the South Asian nation.
Apple already sells its phones directly to Indian users and operates its own retail stores in Mumbai and in New Delhi. The iPhone developer is the dominant leader in that market for smartphone technology. Looking to better its position in that smartphone rivalry, Google is doing the same, which could improve investors’ opinions on GOOGL stock. Pixel phones in India will cost from about $360 to $1,900 for top-end models. Meanwhile, Apple’s iPhones cost from about $520-$2,100. Google has also started making Pixel smartphones in India, looking to beat out the iPhone with cheaper prices and development costs.
Google Pixel, AI Make Alphabet (GOOGL) a Must-Watch Tech Stock?
The Google parent company is currently selling at a P/E ratio of 19. Moreover, it stands as a top AI development firm, first utilizing the tech more than 24 years ago. Additionally, its financials are incredibly strong, with $75 billion in free cash flow over the last year and $95 billion in liquidity. There are still questions, specifically regarding how Alphabet’s Google stands in the AI space. The arrival of OpenAI’s ChatGPT changed everything, which knocked Google’s market share to below 90% for the first time ever, according to a recent report.
Additionally, in Q1 2025, 56% of Alphabet’s revenue came from the Google search engine. If Google search is replaced by AI, it could cause the popular search engine to lose out on billions in revenue, heavily impacting investors.
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However, Alphabet is far more than a company that relies solely on what Google can provide it. Its advertising business has skyrocketed. Specifically, it constituted 74% of its revenue in Q1, while its Google Cloud offering jumped to a revenue share of 14%. Altogether, it is showing the diversification and reach necessary to be one big play away from skyrocketing among its mega-cap peers.
Analysts at CNN are mixed on GOOGL’s future, but mostly swing towards bullish. The analysts have a high-end forecast of $250.00 over the next 12 months for Alphabet stock.