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# Alphabet: 3 Reasons To Sell (Archive)
- URL: https://www.huntingalphas.com/alphabet-3-reasons-to-sell-archive/
- Published: 2025-02-06T11:20:00.000Z
- Updated: 2026-02-28T11:05:59.000Z
- Description: Lagging ad growth, slowing cloud momentum, margin pressure and bearish technicals challenge Alphabet.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, GOOGL, Communication Services

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- Google's advertising segment faces a weak growth outlook in FY25 as it comes off an election year, with some growth tailwinds cooling down.
- Despite being smaller in scale than Microsoft Azure, Google Cloud's revenue growth is slowing down to that of Azure. This raises concerns of potential market share pressures.
- I expect higher depreciation expenses from capex investments to pressure EBIT margins below 30% in FY25.
- Valuations are near historical fair value levels, and GOOGL vs. S&P 500 technicals show a strong rejection off monthly resistance after the Q4 earnings release.
- Google is seeing good traction in AI-enhanced search features and is monetizing that at the same rate as its existing Search business. This makes it a source of upside risk to my bearish thesis.

Read the full article [here](https://seekingalpha.com/article/4755448-alphabet-3-reasons-to-sell?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*