Alphabet (NASDAQ: GOOG), the parent company of Google, has been one of the world’s most closely watched stocks. In 2025, it’s once again making headlines with fresh highs, a renewed focus on AI, and growing interest from Australian investors seeking global tech exposure. But with all the hype, does Alphabet still deserve a spot in your portfolio this year?
Alphabet’s 2025 Momentum: What’s Driving the Growth?
After a strong 2024, Alphabet’s share price continued its upward trajectory in early 2025, climbing more than 15% year-to-date (as of May). The key drivers behind this momentum include:
- Artificial Intelligence Expansion: Alphabet’s Gemini AI suite, including AI-powered search and productivity tools, has quickly gained market share and delivered new revenue streams.
- Digital Ad Rebound: Global digital advertising demand rebounded faster than expected, with Google Search and YouTube posting double-digit growth.
- Cloud Strength: Google Cloud posted another profitable quarter, narrowing the gap with AWS and Microsoft Azure, and winning major enterprise clients across Asia-Pacific.
For Australian investors, the appeal is clear: Alphabet offers exposure to global technology trends, diversified revenue, and strong cash flow. In fact, several large super funds increased their holdings in Alphabet during Q1 2025, reflecting confidence in its long-term growth story.
Risks and Headwinds: What Could Slow Alphabet Down?
No investment comes without risks. Even as Alphabet thrives, investors should keep a close eye on several emerging challenges in 2025:
- Regulatory Scrutiny: The US Department of Justice and European Commission have both intensified antitrust investigations into Google’s dominance, particularly around ad tech and search. While Alphabet has set aside legal reserves, any major fines or forced divestitures could impact future earnings.
- AI Competition: Microsoft, Amazon, and a wave of nimble startups are aggressively pursuing AI innovation. Google’s lead in generative AI is under constant threat, and investors are watching closely for signs of lost market share or declining margins as competition heats up.
- Currency and Market Volatility: For Australians, investing in US-listed Alphabet stock means exposure to USD/AUD currency swings. In 2025, the Aussie dollar has been volatile, impacting returns for unhedged investors.
Despite these headwinds, Alphabet’s fortress balance sheet (over $150 billion in cash and equivalents) and diversified business lines continue to provide a strong buffer against shocks.
How to Buy Alphabet Stock from Australia (and What to Watch For)
Buying Alphabet shares as an Australian retail investor is easier than ever, thanks to local brokers offering access to US markets. Here’s how to get started:
- Choose a Broker: Platforms like Stake, Superhero, and SelfWealth allow direct trading of US shares, including GOOG and GOOGL.
- Set Up an Account: You’ll need to provide ID and complete a W-8BEN form for US tax compliance.
- Fund Your Account: Most brokers support AUD deposits, but be mindful of FX fees.
- Research and Buy: Use limit orders to manage your entry price, and consider the impact of US market hours.
For 2025, keep an eye on:
- Alphabet’s Quarterly Earnings: Watch for updates on AI monetisation and cloud growth.
- Regulatory News: Any major antitrust action could quickly move the share price.
- Currency Movements: The AUD/USD exchange rate can add an extra layer of volatility to your returns.
Should Alphabet Be in Your 2025 Portfolio?
Alphabet remains a tech heavyweight with a proven ability to adapt and innovate—qualities that have rewarded long-term shareholders handsomely. For Australians seeking diversified global growth, Alphabet offers exposure to AI, digital advertising, and cloud computing, all in one package.
However, given the regulatory and competitive risks in 2025, it’s wise to size your position appropriately and consider how US dollar exposure fits within your broader investment strategy.
