Alphabet Inc. (GOOGL): A Bull Case Theory

We came across a bullish thesis on Alphabet Inc. on Jimmy’s Journal’s Substack by Jimmy Investor. In this article, we will summarize the bulls’ thesis on GOOGL. Alphabet Inc.'s share was trading at $314.89 as of December 1st. GOOGL’s trailing and forward P/E were 31.61 and 28.90 respectively according to Yahoo Finance.

Google’s enduring power lies in its ability to transform products into interconnected systems that learn, scale, and compound. Founded by Larry Page and Sergey Brin at Stanford, Google began as an experiment in organizing the web through relationships rather than randomness. Their creation, PageRank, became the algorithmic backbone of a company that redefined how the world discovers and trusts information. By the early 2000s, Google had evolved from a search engine into the infrastructure of the internet, reshaping how media, advertising, and knowledge circulate globally.

The transformation from curiosity to power was fueled by a culture of relentless experimentation and pressure-driven brilliance, where failure was tolerated and speed celebrated. Eric Schmidt’s leadership brought structure to chaos, institutionalizing the philosophy that management’s role was to build resilience, not prevent risk. This mindset—embodied by “smart creatives” blending technical depth and imagination—enabled Google to scale both culture and innovation. Its foundational businesses in Search, Ads, YouTube, Android, Chrome, and Maps form a self-reinforcing loop of intent, data, and monetization, funding future bets across AI and moonshots.

Under Sundar Pichai, Google’s “AI-first” pivot unified research, cloud infrastructure, and distribution at planetary scale, embedding intelligence into every layer of its ecosystem. Through DeepMind, Gemini, and Cloud, AI is not introduced but absorbed. Even as it faces antitrust scrutiny, talent wars, and cultural fatigue, Google’s strategic flywheel continues to compound—an engine of learning where each cycle strengthens the next. Two decades post-IPO, Google is no longer chasing the future; it is quietly building it.

Previously we covered a bullish thesis on Alphabet Inc. (GOOGL) by FluentInQuality in May 2025, which highlighted Alphabet’s dominance across digital infrastructure, data, and AI integration through Search, YouTube, Cloud, and Android. The company’s stock price has appreciated by 98.71% since our coverage as the AI-driven growth thesis played out successfully. Jimmy Investor shares a similar view but emphasizes Google’s cultural foundations and system design as its enduring strength.

Alphabet Inc. is on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 219 hedge fund portfolios held GOOGL at the end of the second quarter which was 227 in the previous quarter. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.