Is Google Stock A Buy In November? Here’s What Matters Most For GOOGL Stock
Google Parents alphabet GOOGL appears to be in the winner’s circle in the field of artificial intelligence. But it may have to share it with well-funded startup OpenAI. Google shares rise 48% in 2025.
Meanwhile, Google stock reached an all-time high after announcing third-quarter earnings. Stocks have surpassed the $3 trillion valuation mark.
Investor concern about the potential disruption of the core Internet search business amid the rise of generative artificial intelligence remains, although antitrust concerns have diminished somewhat.
In search, new competition from ChatGPT, Perplexity, and others from OpenAI has forced Google to overhaul its search results. ChatGPT provides answers to search queries, while Google’s business model is based on providing web links.
Google, OpenAI competition
OpenAI is leveraging its latest AI model, GPT-5, and recently introduced a web browser. Meanwhile, Google’s Gemini app has more than 650 million monthly users on average. But ChatGPT has more than 800 million weekly active users, including many consumers with subscriptions.
From now on, Google will push users of its Chrome browser towards Gemini.
Furthermore, Wall Street analysts are eyeing potential catalysts for Google shares. That’s where the upcoming AI model called Gemini 3 comes in. Google plans to release its latest model, Gemini 3, later this year.
“Looking ahead, Google is well positioned to benefit from advances in artificial intelligence over the next few quarters,” Cantor analyst Deepak Mathivanan said in a report. “In addition, the upcoming launch of Gemini 3 should provide a positive catalyst for the stock.”
At Mizuho Securities, analyst Lloyd Walmsley said in a report: “We believe the stock can continue to run with a Gemini 3 model catalyst going forward, continued gains from AI in the advertising platform and at YouTube, and a compelling outlook on the top and bottom lines of Google Cloud.”
“Google is well-positioned for AI with a leading large language model, TPU (artificial intelligence accelerator chip) technology and a huge user base,” Justin Post, an analyst at Bank of America, said in a report.
Google’s third-quarter earnings beat
Additionally, Google’s earnings for the quarter ending September 30 rose 35% to $2.87 per share. Google’s total revenues increased by 16%, reaching $102.35 billion. Analysts had expected earnings per share of $2.26 on revenue of $99.94 billion. Internet search advertising revenue rose more than 14% to $56.57 billion versus estimates of $55.05 billion.
Meanwhile, Google raised its 2025 capital spending estimates by 8% to $92 billion midterm, up from previous guidance of $85 billion. Most capital spending goes toward cloud AI infrastructure.
In the third quarter, cloud computing revenue rose 33.5% to $15.16 billion versus estimates of $14.70 billion. Google Cloud’s order backlog jumped 82% from the previous year to $155 billion. But Goldman Sachs analyst Eric Sheridan expects that in percentage terms, Google’s capital expenditures will moderate to 32% ($122 billion) in 2026 from 75% this year.
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Google is leveraging AI prowess in models, chips, agents and data security to grow its cloud computing business, Google CEO Thomas Kurian said at an industry technology conference in September. New customers include OpenAI, Meta platforms (meta), and anthropic.
One view is that Google’s home-grown AI accelerator chips, called TPUs, are becoming a stronger competitor Nvidia (NVDA).
In March, Alphabet agreed to buy fast-growing cybersecurity company Wiz in a cash deal worth $32 billion. One view is that purchasing Wiz could boost Google’s share of the cloud computing market versus Amazon and… Microsoft (MSFT)
Google Stock: Antitrust Concerns
In early September, Google shares rose when a federal judge ruled that there would be no need to divest assets as part of remedies in an antitrust case related to the tech giant’s Internet search business.
Following the search ruling, Google has introduced the new Gemini integration across its Chrome browser to all US desktop users. Chrome now features native Gemini accessibility via a dedicated button, allowing users to analyze information and content without switching windows.
However, the digital advertising antitrust case could end differently. In April, Judge Leonie Brinkema of the US District Court for the Eastern District of Virginia ruled that Google used classic monopoly-building tactics to control online advertising. The Justice Department alleged that Google’s dominance of the digital advertising market harmed advertisers and content creators.
IBD Methodology: How to Invest in Stocks with Risk Management
In September, Brinkema held hearings to discuss possible solutions. The government said Google must sell its Google Ad Manager software, which includes the company’s publisher ad server and ad exchange. Ad servers and ad exchanges are located between buyers and sellers. Brinkema is expected to issue a ruling on treatments in early 2026.
Google shares: big changes in search
Google will begin rolling out its AI Overviews feature in the US in mid-2024, with conversation summaries topping links for many search queries. The long-term question is how Google Search ad revenue growth will be affected by AI Overviews. Google says AI Overviews now has more than 1.5 billion monthly active users.
On October 21, OpenAI introduced an AI-powered web browser called ChatGPT Atlas that features agents that complete tasks online.
Many technology companies are focusing on autonomous, goal-driven AI “agents” that complete tasks themselves. Online shopping on behalf of consumers is expected to be one of the big applications.
Google recently announced a new Agent Payments Protocol (AP2), developed in collaboration with 60 industry partners. Furthermore, AP2 is designed to address authorization, authentication, and accountability in agent payments.
From an accounting point of view, high consumption of data center servers is a concern because it reduces profits. Analysts expect further cost cuts to offset the currency appreciation. Google uses artificial intelligence internally for software coding projects, which may limit hiring.
GOOGL Stock: Buy or Sell Now?
Also, GOOGL stock’s Relative Strength Rating currently stands at 92 out of a top 99, according to IBD Stock Screener. The best stocks tend to have an RS Rating of 80 or better.
Google stock carries an Accumulation/Distribution rating of A. This institutional ownership rating analyzes price and volume changes in the stock over the past 13 weeks of trading. A+ indicates heavy institutional buying; E means heavy selling. Think of C as neutral.
Furthermore, GOOGL stock carries an IBD Composite Rating of 99 out of the best possible score of 99. compound classification It is a combination of key fundamental and technical metrics to help investors gauge a stock’s strengths. The best growth stocks have a Composite Rating of 90 or better.
Meanwhile, GOOGL stock is 21 days old Atr From 2.81. The Average True Range is a metric available in IBD’s MarketSurge that measures the distinct range of a stock’s behavior. Stocks that tend to have big jumps or big drops in daily movement, the kind that can trigger sell rules and investors out of the stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
IBD suggests stocks with ATRs up to 8%.
Also, as of November 3, GOOGL stock needs to form a new base in order to be viable.
Follow Reinhardt Krauss on X, formerly Twitter, @reinhardtk_tech For updates on artificial intelligence, cybersecurity, and cloud computing.
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2025-11-03 13:01:00
