1. Project Overview
Alphabet Inc. is one of the largest internet and artificial intelligence companies in the world, founded on September 4, 1998, and listed on NASDAQ. On-chain, GOOGL has entered the crypto market in tokenized form, currently issued by Ondo Global Markets. Currently, the on-chain price has about a 1.5% discount compared to spot, which mainly comes from the pricing lag during U.S. stock market holidays and differences in on-chain liquidity depth.
2. Project Introduction
Alphabet is the parent company of Google. Eighty percent of its revenue comes from Google Services, of which the vast majority is advertising; additionally, it includes subscription services such as YouTube TV, YouTube Music, Google One, revenue sharing from the Play Store platform, and hardware such as Pixel and Chromebook. Google Cloud accounts for about twenty percent of total revenue, while the rest comes from cutting-edge businesses like Waymo (autonomous driving), Verily (healthcare), and Google Fiber.
In FY 2025, Alphabet's annual revenue exceeded $400 billion for the first time, with fourth-quarter revenue of $113.8 billion, an 18% year-over-year increase, and Google Cloud growth reaching 48%. Entering 2026, growth further accelerated: Q1 2026 revenue was $109.9 billion, a 22% year-over-year increase, marking the fastest quarterly growth since 2022; operating profit margin expanded from 33.9% to 36.1%.
On the on-chain side, GOOGL's tokenized version (GOOGLon) is issued by Ondo Global Markets, which was launched in September 2025 and has now become the world's largest tokenized stock/ETF platform.
3. Products and Technology
Alphabet's technological moat is built on "full-stack AI" - self-developed chips, self-developed models, proprietary products, and proprietary distribution channels.
Search and advertising: The biggest concern in the market previously was that AI Q&A would erode search advertising. The Q1 data provided contrary evidence: search and other revenues increased year-over-year by 19.1% to $60.4 billion, paid clicks grew by 13%, and cost per click rose by 5%, indicating an increase in both volume and price. Management stated that over the past five years, while continuously adding AI features, search latency has declined by more than 35%; after upgrading AI Overviews and AI Mode to Gemini 3, core AI response costs fell by over 30%.
Cloud and enterprise AI: In Q1, cloud revenue grew year-over-year by 63%, surpassing $20 billion for the first time, and backlogged orders nearly doubled sequentially to over $460 billion; enterprise AI solutions became the primary growth engine for cloud business for the first time. The operating profit margin for the cloud business expanded to 32.9%.
Models and chips: Gemini 3 was released in November 2025, with Gemini application monthly active users exceeding 750 million. The self-developed TPU (seventh generation Ironwood) has gained external customers, including Meta, making Alphabet a credible alternative to NVIDIA GPUs.
Other businesses: Waymo's fully autonomous driving orders have exceeded 500,000 per week; Gemini Enterprise's paid monthly actives increased by 40% sequentially.
4. Economic Model
As a mature stock asset, GOOGL's value capture comes from three levels.
Revenue structure: Advertising remains the cornerstone of cash flow (Q1 advertising revenue was $77.25 billion, of which YouTube ads accounted for $9.9 billion, growing 11%), the cloud business provides a secondary growth curve, and "other bets" provide option value.
Capital expenditure and free cash flow: This is currently the most critical valuation variable. Q1 capital expenditure was $35.7 billion, a year-over-year surge of 107%, leading to a 47% year-over-year decline in free cash flow to $10.1 billion; the company has raised its full-year 2026 capital expenditure guidance to $180 billion - $190 billion. Free cash flow profit margin compressed from 21% to 9.2%, indicating that the depreciation pressure will continue to erode book returns over the next several quarters.
Equity structure and shareholder returns: Alphabet employs a three-tiered equity structure: GOOGL (Class A, 1 vote), Class B (10 votes, held by the founders), GOOG (Class C, no voting rights), allowing the founders to retain control long-term. The company returns cash through quarterly dividends and large-scale buybacks.
Tokenization mechanism: Ondo's tokenized stock is a total return tracking tool, 1:1 held by a licensed U.S. broker for the corresponding stock; dividends are automatically reinvested after withholding tax, reflected as an increase in the number of tokens held rather than price adjustment. From June 26, 2026, GOOGLon and other varieties support 24/7 minting and redemption.
5. Team and Investors
Founders Larry Page and Sergey Brin have stepped back from day-to-day management but maintain actual control through Class B shares. The current CEO is Sundar Pichai, CFO is Anat Ashkenazi, and Ruth Porat serves as President and Chief Investment Officer. Demis Hassabis leads Google DeepMind, the core of model development.
As a trillion-dollar company, Alphabet’s "investors" include global institutions and retail shareholders, with passive asset managers such as Vanguard, BlackRock, and State Street consistently among the top holders.
6. Roadmap
Alphabet can be summarized in three main lines:
First, computing power delivery. Management has clearly stated that the cloud business is constrained by capacity, with server deployment speed rather than demand determining future growth; cloud revenue growth in Q2 and Q3 may fall from 63% due to capacity constraints rather than demand. The cadence of implementing capital expenditure of $180 billion to $190 billion is the most important observation point for 2026.
Second, deepening AI commercialization. Iteration of AI Mode on the search side, expansion of positions for Gemini Enterprise, and external sales of TPU are three channels for converting capital expenditure into revenue.
Third, new business turning positive. Waymo is moving from scale expansion to improving unit economics, and the market generally focuses on whether it can approach breakeven around 2027.
On the on-chain side, Ondo is pushing tokenized stocks towards derivatives and collateral scenarios. Ondo Perps has begun public testing in June 2026, offering tokenized stock perpetual contracts to non-U.S. qualified users with up to 20 times leverage, allowing tokenized securities to serve as margin.
7. Risks and Opportunities
Regulatory and legal risks are the most prominent. In September 2025, Judge Mehta's remedial ruling, while not mandating the divestiture of Chrome, prohibits Google from signing exclusive distribution contracts for Search, Chrome, and the Gemini application, and requires sharing search index and user interaction data with qualified competitors; Google appealed on January 16, 2026, while the Justice Department filed a cross-appeal on February 3, seeking a stronger structural break-up. In the advertising technology antitrust case, the Justice Department is pushing for the mandatory divestiture of AdX, with a remedial ruling expected to be made in 2026; the European Union has already imposed a fine of €2.95 billion in similar cases.
Financial risks center around the return cycle of capital expenditures. Depreciation is front-loaded, and revenue is back-loaded; if AI demand is less than expected, profit margins will be pressured. Competitive risks arise from model vendors like OpenAI and Anthropic diverting search traffic and long-term ecosystem issues caused by AI responses compressing clicks.
The unique risks at the tokenization level should not be overlooked: issuer credit and custody risks, slippage and premiums/discounts due to insufficient on-chain liquidity (currently about 1.5% discount), pricing vacuums during U.S. stock market holidays, smart contract and cross-chain bridge risks, and regional compliance limitations.
Opportunities are also clear: the backlog of cloud business orders has reached a level of $460 billion, providing visibility into revenue for the coming years; external sales of TPU have opened a second growth curve; the overall size of tokenized stocks has exceeded $1.5 billion, and if this sector continues to expand, the on-chain liquidity and use cases (collateral, portfolio construction, 24/7 trading) of GOOGLon as a blue-chip target still have significant room for improvement.
8. Summary
Alphabet is in a rare state: core business accelerating, cloud business exploding, AI full-stack capabilities being realized, while bearing the heaviest capital expenditures and the most complex antitrust lawsuits in history. The market reaction to the Q1 financial report - superb performance exceeding expectations while the stock price weakened - precisely illustrates the current pricing contradiction: the market recognizes growth but is still re-evaluating "how much cash to spend for growth".
For on-chain investors, GOOGLon provides a new channel for gaining exposure to U.S. blue-chip stocks rather than a new asset class. Its risk-return characteristics are essentially still Alphabet's stock risk, layered with tokenization infrastructure risks and liquidity discounts. This report is for research reference only; all data comes from public sources and may change over time. Any investment decision should be based on independent judgment and professional advice.
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