Should I buy Google stock in 2025? Expert Advice for South Africans

What is Google?

How much is the Google stock?

The price of Google stock is declining this week. As of today, Alphabet Inc. (Google) shares are trading at $172.36, showing a 0.44% drop over the past 24 hours, with a slightly negative weekly trend. The company boasts a market capitalization of $2.086 trillion and an average 3-month trading volume of 45.81 million shares. With a P/E ratio of 19.24, a dividend yield of 0.49%, and a stable stock beta of 1.01, Google remains a notable player in the global tech sector. Investors in South Africa should keep an eye on short-term volatility but consider the stock’s long-term growth potential.

Our full analysis on the Google stock

Having rigorously reviewed Alphabet Inc. (Google)'s latest financial results alongside the stock's trajectory over the past three years, our multi-factor analysis—encompassing financial metrics, technical signals, real-time market data, and competitor intelligence—reveals compelling insights derived from our proprietary algorithms. The convergence of strong momentum, robust fundamentals, and sector leadership present a unique configuration for long-term value creation. So, why might Google stock once again become a strategic entry point into the technology sector in 2025?

Recent Performance and Market Context

Google (NASDAQ: GOOGL) has delivered resilient returns, underscoring investor confidence in both the company and the wider technology sector. As of May 2025, the stock trades at $172.36, comfortably positioned within its 52-week price range of $140.53 to $207.05. Over the trailing three years, shares have steadily appreciated, consistently outperforming sector indices, fueled by double-digit earnings growth and persistent innovation.

Recent quarters have seen Google outperform analyst expectations. Q1 2025 results revealed a 12% year-over-year revenue growth, reaching $90.2 billion, and an impressive 49% surge in earnings per share to $2.81—both ahead of consensus estimates. The positive earnings surprise not only ignited bullish sentiment but was further reinforced by a 5% increase in its quarterly dividend, now at $0.21 per share, signaling sustainable capital allocation discipline.

The macro environment remains favourable for large-cap US tech, with robust corporate IT spending, accelerating cloud adoption, and the rapid commercialisation of Artificial Intelligence (AI). For South African investors, the global appetite for technology stocks—coupled with a relatively weaker rand—has amplified the allure of investing in proven dollar-denominated growth leaders such as Google.

Technical Analysis

Technical underpinnings support a constructive outlook on Google’s medium- and long-term trajectory. Recent price action consolidates above key moving averages, with strong bullish signals emerging across multiple timeframes:

• Relative Strength Index (RSI 14): At 61.61, Google’s RSI signals a neutral-to-bullish phase, resting far from overbought territory—suggesting scope for further upward movement.
• MACD: A positive MACD reading of 3.30 underscores building bullish momentum and affirms the prevailing trend.
• Exponential Moving Averages (EMA): Prices trade above the 5-, 20-, and 50-day EMAs, confirming a persistent uptrend.

In terms of levels, $170.63 represents immediate technical support, stemming from the intraday low and aligning with sustained buying activity following minor pullbacks. On the upside, the 52-week high at $207.05 forms a clear resistance, but a break above this level could fuel a renewed bullish leg and potentially spark fresh institutional interest. The technical structure reflects healthy consolidation, with short- and medium-term momentum favouring an upward bias—points which historically precede new bullish phases for large-cap growth names.

Fundamental Analysis

Alphabet’s investment case is anchored by industry-leading fundamentals:

• Consistent Growth: Q1 2025 revenue surged 12% year-on-year, with notable acceleration in higher-margin businesses such as Google Cloud (+28% YoY to $12.3 billion) and YouTube advertising.
• Profitability: With net margins reaching 28.6% and an annualised P/E of 19.24, Alphabet combines robust returns with an attractive relative valuation, especially when compared to sector peers trading at higher multiples despite slower growth.
• Valuation: A forward P/E of 18.48 places Google at a discount to other megacap tech stocks, while its Price/Sales and PEG ratios reflect rational, growth-adjusted pricing—offering both value and upside.
• Portfolio Diversification: The group’s dominance across Search, YouTube, and Cloud provides a resilient, diversified earnings base unaffected by cyclicality facing pure-play consumer tech or hardware firms.
• Innovation and Market Share: Multi-billion dollar investments in generative AI and next-generation digital services position Google at the forefront of the technology revolution, underpinning its world-leading search market share and expanding relevance in enterprise cloud.

Strategically, Alphabet’s agile adaptation—visible in the seamless integration of AI into Search and Cloud—reflects a culture of innovation rarely matched within global large-cap equities. This adaptability, combined with formidable market share and a strong brand, creates a protective economic moat which should support sustained growth.

Volume and Liquidity

Robust liquidity is evidenced by an average daily volume of 45.81 million shares over the past three months and a tradable float of 5.8 billion shares. Such depth attracts both retail and institutional flows, contributing to narrow bid-ask spreads and dynamic price discovery.

High liquidity not only insulates Google from sharp, erratic swings but is a testament to market conviction and sustained interest. For South African investors, the ability to smoothly enter and exit positions—regardless of market conditions—is a crucial advantage, especially amid changing global risk appetites.

Catalysts and Positive Outlook

Looking ahead, several distinct growth engines are poised to drive future outperformance:

• AI Expansion: Alphabet is actively integrating advanced AI tools across its product suite, from search enhancements (“AI Overviews”) to data analytics in Google Cloud. The robust AI-driven transformation is still in early stages, promising significant monetisation opportunities.
• Google Cloud: With quarterly revenues escalating 28% YoY and ambitious targets toward $100 billion annual revenue, Cloud remains underpenetrated relative to competitors, yet Alphabet’s infrastructure, global reach, and security focus point toward continued market share gains.
• YouTube and Advertising: YouTube’s resilient user growth and evolving monetisation models—including Shorts and subscription services—further diversify revenue streams and reduce sole reliance on traditional search advertising.
• M&A and ESG Initiatives: Alphabet’s active investment pipeline, coupled with a deep commitment to ESG (notably in renewable energy and digital inclusion), buttresses its appeal to both growth and socially responsible investors.

Regulatory scrutiny is an industry-wide theme for big tech; however, Alphabet’s proactive compliance stance and diversified revenue base reduce binary downside risk compared to more concentrated peers. In parallel, the broad analyst consensus (29 Buy, 9 Hold, 0 Sell) and an average price target of $199.75—implying ~16% upside—signal continued institutional faith.

Investment Strategies

The current set-up offers flexibility across multiple time horizons:

Short-Term (0–6 months)

• Thesis: Potential for sharp upward moves as technical indicators shift further bullish, especially on a break above the $207 resistance.
• Positioning: Consider entries on pullbacks toward the $170–172 region; tight stops below $170 ensure disciplined risk control.

Medium-Term (6–18 months)

• Thesis: Acceleration of AI and Cloud revenue is likely to feed through quarterly prints, aligning with consensus upgrades and further dividend enhancements.
• Positioning: Stepwise accumulation on technical dips, holding through quarterly earnings releases and macro tech rallies.

Long-Term (18 months+)

• Thesis: Entrenchment in digital infrastructure, sustained innovation, and robust free cash flows create enduring value.
• Positioning: Classic core-holding approach, leveraging periodic weakness for incremental adds, with confidence in value compounding over cycle.

Whichever the horizon, current consolidation above technical support—combined with fundamental strength and a clear pipeline of bullish catalysts—arguably offers ideal positioning ahead of potential breakouts or cycle upswings.

Is it the Right Time to Buy Google?

In re-assessing Google’s investment case, a recurring theme emerges: the convergence of technical momentum, high conviction earnings delivery, undervalued multiples, and unmistakable sector leadership. With its footprint expanding into AI, cloud, and digital advertising, supported by resilient financials and a reinvigorated capital return strategy, Google seems to represent an excellent opportunity in global technology equities at present valuations.

While near-term regulatory pressures and cloud competition persist, Alphabet’s uniquely diversified business model and relentless innovation mitigate these risks—and may even create further relative advantages over time. The stock’s liquidity, growing dividend, and analyst consensus reflect sustained institutional conviction.

For South African investors seeking exposure to a world-class technology leader well-positioned for digital transformation’s next chapter, Google’s fundamentals justify renewed interest. If history is any guide, the current technical and strategic backdrop signals that the stock may be entering a new bullish phase, presenting an attractive opportunity to gain exposure to the next wave of technological advancement and resilient USD-based growth.

Ultimately, Google’s combination of scale, dynamism, and future-facing innovation makes it highly worthy of a place on the radar of discerning investors plotting their course through a digital-first global economy.

How to buy Google stock in ZA?

Buying Google (Alphabet Inc., ticker: GOOGL) stock online is both simple and secure, especially when you choose a regulated broker. South African investors can easily access Google shares globally, using two main methods: direct spot (cash) buying or trading Contracts for Difference (CFDs). Spot buying means you actually own the underlying shares, while CFDs allow you to speculate on the price, often with leverage. Below, we detail how each approach works – and to help you choose, a comprehensive broker comparison awaits further down the page.

Spot (Cash) Buying

A cash purchase means you are buying real Google shares and becoming a partial owner in Alphabet Inc. This method is ideal for those looking for long-term exposure and who may wish to benefit from dividends. When buying shares via a regulated South African or global broker, you typically pay a fixed commission per order – for example, around R90–R120 (about $5–$6).

Example

Suppose Google’s share price is $172.36 and you want to invest $1,000. Subtracting a $5 brokerage fee leaves $995 for purchasing shares. You could buy approximately 5.77 shares ($995 ÷ $172.36 = ~5.77).

✔️ Gain scenario: If the share price rises by 10%, your investment is now worth about $1,100.

Result: +$100 gross gain (+10%) on your original investment.

Trading via CFD

CFD (Contract for Difference) trading means you speculate on Google’s price movement without owning the shares. CFDs are popular for their flexibility, allowing you to profit from both rising and falling prices, and offering leverage. However, they involve additional risks and costs, such as the spread (the difference between buy and sell price) and overnight financing fees if you hold positions for more than a day.

Example

You open a CFD position on Google with $1,000 and leverage of 5x, giving you market exposure of $5,000.

✔️ Gain scenario: If Google’s stock rises by 8%, your position gains 8% × 5 = 40%.

Result: That’s a $400 gain (excluding fees) on a $1,000 stake, but note that losses can be magnified similarly.

Final Advice

Before investing in Google shares, always compare brokers’ fees, regulations, and trading conditions – these can affect your net returns. You’ll find a detailed broker comparison further down this page to support your research. Whether you prefer to own shares outright or explore the flexibility of CFDs, the best approach depends on your personal investment goals, risk appetite, and time horizon. Take time to assess your needs, and start building your investment portfolio with confidence.

Our 7 tips for buying Google stock

The latest news about Google

Alphabet reported Q1 2025 results with a 12% revenue rise and record net margin, exceeding analyst expectations. Alphabet’s latest financial report, released within the past week, showed Q1 2025 revenues of $90.2 billion—up 12% year-over-year—while net margin climbed impressively to 28.6%. Earnings per share reached $2.81, posting a remarkable 49% increase over the prior year’s comparable quarter. These results significantly outperformed Wall Street consensus forecasts and underline the company’s robust operating leverage and ongoing monetisation strength. For South African investors, Alphabet’s ability to consistently outpace growth estimates positions it as a resilient option in global tech portfolios, especially for those seeking USD revenue exposure anchored in strong fundamental growth.

Google’s cloud business posted a 28% year-over-year jump amid rising demand for AI services, directly relevant to African market modernization. The Google Cloud division’s revenue surged to $12.3 billion in Q1 2025, reflecting continued momentum as enterprises, from financial services to logistics, accelerate digitalisation through AI-enhanced solutions. Africa, and particularly South Africa’s financial, telecoms, and mining sectors, have seen Google Cloud’s expanded local footprint—through data centre partnerships and training initiatives—enabling a new wave of cloud adoption and AI integration. This positions Alphabet as a leading beneficiary of Africa’s tech infrastructure upgrade cycle, supporting long-term regional relevance and market share.

Consensus among global equity analysts remains “Strong Buy” with an average price target indicating 16% upside from current levels. In the latest sample of 38 major analysts, 29 recommend buying Alphabet stock, with a current average 12-month price target of $199.75, well above the recent price of $172.36. No sell ratings were recorded. Continued product innovation and resilient digital ad growth are cited, with particular optimism for ongoing AI-driven monetisation. For South African institutional and retail investors alike, such robust consensus underlines the stock’s credibility as a core portfolio holding with appreciable upside potential, mitigating concerns about short-term volatility or global economic uncertainties.

Google is stepping up its commitment to the South African digital economy through skills development and infrastructure investment. In tandem with the company’s global expansion, the past week saw renewed attention to Alphabet’s efforts in South Africa—including the Google for Startups Africa Accelerator and expanded support for local SMEs. These initiatives, coupled with investments in hyperscale cloud regions and new partnerships with South African universities and training organisations, are designed to nurture AI, digital marketing, and software development skills locally. These efforts further entrench Google’s brand and technology ecosystem in the region, supporting long-term user and business adoption—key factors in sustaining regional growth and strengthening Alphabet’s global value proposition.

Technical indicators remain bullish, with Alphabet trading in a strongly upward trend supported by positive MACD and RSI levels. The technical picture over the last week points to continued investor confidence: the 14-day RSI sits at 61.61 (indicating a neutral to bullish bias), while the MACD remains positive. The stock trades comfortably above its key support level of $170.63 and maintains visible upward momentum reflected in short-, medium-, and long-term moving averages. This constructive technical setup complements positive news flow and strong fundamentals, providing further affirmation for active traders and South African portfolio managers seeking timely global tech allocations.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.