Alphabet Q1 Preview: How Much Upside is Left

Alphabet (GOOG/L) has shown significant growth in the past year, driven by advertising, subscriptions, and hyper-growth in Google Cloud, with AI boosting ad revenue and expanding cloud margins. Despite a potential short-term free cash flow concern due to substantial capital expenditure, the company has ample debt capacity and is projected to achieve a 20-25% EPS CAGR. However, the current valuation might limit substantial further upside, suggesting that most gains may have already been made.

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