In this test, this is just greenfield
generation — generating directly with a text
prompt. And in all honesty, neither video is
particularly jaw-dropping.
But Google’s is far better.
It at least follows the image of plane
flying, hitting the ground, and a fiery
explosion afterwards. Sora is confused about
everything, and even detonated the plane
before hitting the ground and did a weird
camera pan off.
The results aren’t even comparable.
What’s also neat is that the advanced Gemini
plan (starting at $125/month) has additional
features like 4K video generation and native
audio generation. It also has direct
picture-to-video generation, which may prove
to be invaluable for content creators like
me. While inaccessible to the vast majority
of AI enthusiasts, including myself, this is
a monumental step forward that’s bound to
cause aggressive competition in the near
future.
Some other interesting things to come out of
this event includes:
-
Project Mariner: Real-world agentic tasks that can handle
things such as buying concert tickets or
purchasing groceries
-
Project Astra: Augmented-reality that allow for insane
use-cases such as live-translation. This
is the first direct attack to Meta’s AI
Ray-Bans that we’ve seen from any tech
company
-
Google Workspace enhancements:
Some neat improvements to Google workspace
including Gemini integration with Google
Docs and live translation via Google Meet
While Google’s I/O event was absolutely an
unforgettable milestone in the advancement
of AI, shiny gadgets and useful tools aren’t
enough for me to consider investing.
What’s more important is the overall
strength of the business.
Diving Deeper: Is GOOGL a Smart Stock to
Buy?
To answer the question of “should I buy
Google stock?” , I turned to the
Alphabet Inc. (GOOGL) Deep Dive
Report generated
by NexusTrade.
The Deep Dive Report generated for Google
This report combines:
-
Fundamental data from EODHD, a high-quality data provider
-
Calculated financial metrics such as
compound annual growth rate
-
News from a variety of different sources
on the internet
And generates a comprehensive, data-backed
report that is thorough, robust, and easy to
fact-check.
What I found was a compelling, if complex,
picture.
Want high-quality fundamental data
for your financial platforms? Get
started for free on EODHD!
The Financial Fortress:
The report highlights Google’s
robust financial performance. We’re talking Q1 2025 revenue of
$90.2 billion
and a net income of
$34.5 billion.
What really caught my eye was the 30.2%
quarter-over-quarter surge in net income,
signaling
improving operational efficiency. Their balance sheet is a fortress: $95.33
billion in cash and short-term investments,
with minimal long-term debt ($10.89
billion).
This financial muscle is crucial for funding
the ambitious AI projects showcased at
Google I/O. The report states, “Alphabet
maintains an exceptionally strong balance
sheet… providing Alphabet with significant
strategic flexibility.”
Growth and Valuation:
Google’s 10-year revenue CAGR of 16.67% is
impressive for a company its size. While the
3-year CAGR moderated, the report notes an
acceleration in net income growth.
From a valuation standpoint, the report also
states that Google appears
reasonably valued
with a P/E ratio of 19.03 (as of the report
date). This is lower than all of the other
FANNG stocks.
A bar chart comparing revenue growth,
margins, and valuations across the most
popular tech stocks
But it’s not just the P/E ratio that makes
it attractive. Apples-to-apples, if we
compare Google to… well Apple, the most
valuable company on Earth, we see an
interesting story.
A bar chart showing a comparison of key
metrics between Google and Apple
-
Revenue Growth: Google grew at 13.87% vs Apple’s 2.02%
— indicating significantly faster top-line
growth.
-
Gross Margin: Google’s 58.20% is higher than Apple’s
46.21% — showing Google keeps more profit
per dollar of revenue.
-
Operating Margin: Google edges out with 32.11% vs Apple’s
31.51% — suggesting slightly better
operational efficiency.
-
Net Margin:
Google’s 28.60% vs Apple’s 23.97% —
meaning Google converts more revenue into
bottom-line profit.
-
P/E Ratio:
Google trades at 19.03 vs Apple’s 32.48 —
making Google cheaper relative to its
earnings.
-
EV/EBITDA:
Google’s multiple is 15.01 vs Apple’s
23.16 — showing Google is priced more
attractively based on core operating
profit.
This presents an interesting value
opportunity. While Apple has things that
Google doesn’t have, including brand
loyalty, better hardware, and less
regulatory scrutiny,
Google is the cheaper stock
fundamentally.
News Catalysts:
Last but not least, the Deep Dive Report
also touched on recent news, like the new
“Google AI Ultra” subscription, an extremely
expensive recurring subscription for AI
fanatics like myself. This paints apicture
of a company aggressively pushing into new
growth frontiers.
The report also mentioned the fact that
Google Waymo is expanding. This is a good
segue-way into one of my favorite parts
about Google’s businesses that are, for some
reason, never talked about.
Insanely wild innovations like self-driving
cars.
The Waymo Wildcard: The Self-Driving Future
Tesla Dreams Of
One of the most electrifying, yet often
underappreciated, parts of Google’s story is
its “Other Bets” category. Specifically,
it’s long-shots like DeepMind and
Waymo.
While Tesla has a dream of creating a
fleet of self-driving taxis, Waymo has
already made that into a reality. And they are expanding.
The video above perfectly exemplifies this.
In Austin, TX, while taking an Uber across
the city, the app notified me that I could
instead take a Waymo.
I enthusiastically agreed.
While in the Waymo (which was already a
fever-dream-like experience, looking to my
left, and seeing no driver with the wheel
turning itself). I noticed two other Waymos
around me on the street.
It was a real-world Sci-Fi movie.
It felt like stepping directly into the
future. The fact that you can blabber loudly
or blast your music or act like a
belligerent idiot (for fun!) with no
consequences is absolutely unbelievable… and
surreal.
The fact that Google is a leader in this
multi-billion dollar industry is a massive,
often overlooked, upside. Why isn’t
this the headline when
people discuss what stocks to buy for
long-term disruptive growth? Why does Tesla
make headlines for this and
they don’t even have a real
fleet?
The “Yeah, Buts”: Acknowledging Google’s
Risks
Now, it’s not all sunshine and rainbows. The
Deep Dive Report rightly assigns Google a
“Medium” overall risk rating. The biggest
elephant in the room is
regulatory scrutiny. Antitrust lawsuits and investigations are
ongoing globally, and these could lead to
significant fines or forced changes to their
business model.
There’s also the
dependency on search advertising. While diversifying, search remains the
cash cow. The report highlights the threat
of “AI-powered alternatives potentially
diminishing traditional search usage.”
This is a real concern.
Google’s search volume HAS decreased for
the first time in two decades.
The big question is, can Google navigate the
shift to AI-driven information retrieval
without cannibalizing its golden goose?
With the massive amounts of cash stockpiles
and the historical increase in operational
efficiency, my guess would be YES. But it’s
no guarantee.
We see from the Google I/O event that they
are trying, but the execution risk is there.
Competition in AI is also fierce, with
giants like Microsoft, Meta, and OpenAI all
vying for dominance.
Why I’m Taking a Small Bite of the Apple
(or, Google)
Despite these risks, the Google I/O 2025
announcements, combined with my experience
riding in a Waymo and the insights I learned
from the Deep Dive Report have convinced me
to start building a small position in GOOGL.
My NVIDIA success has given me the
flexibility to make calculated bets, and
Google’s AI trajectory is incredibly
compelling.
The company’s
financial strength
provides a safety net, and its
investments in AI
are aggressively offensive. The potential
for AI to enhance every single one of their
products — from Search and YouTube to Cloud
and Android — is immense.
And then there’s Google’s “Other Bets”
segment. This of course includes Waymo, my
personal favorite taxi experiment. But it
also includes other niche applications, like
DeepMind and AlphaFold,
an AI algorithm that all but solved the
70-year-old infamous “Protein Folding
Problem”.
These AI innovations WILL change the world,
even if it weakens its money-printing search
segments.
I’ve seen firsthand how AI can generate
market-beating trading strategies. Now, I’m betting on a company that is at
the forefront of building that AI. It’s a
long-term play, and I’m aware of the
hurdles. But the potential upside,
especially given its current valuation
relative to some peers, makes it an
attractive consideration for “what stocks to
buy” for an AI-centric future.
Final Thoughts: Is Google the Next Big Play?
Google I/O 2025 was a powerful statement
about the future of technology. For
investors wondering “what stocks to buy” to
capitalize on the AI revolution, Google
(GOOGL) presents a fascinating case. It has
the brains, the brawn, and now, a
crystal-clear roadmap for an AI-driven
future.
For these reasons, I’m cautiously starting a
long-term Google trading setup.
My AI-Powered Due Diligence (powered by NexusTrade) has allowed me to see incredible success
with NVIDIA. While I’m mostly in cash, the
sheer innovative power displayed by Google,
backed by solid fundamentals, was too
compelling for me to ignore.
It’s a calculated risk, but one I’m willing
to take.
What do you think? Is Google on your “stocks
to buy” list after I/O? Leave a comment and
share what you thought of the conference!
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