GOOGL/Google Cloud — Scenario Model
Blue = input assumption|Black = computed

Google Cloud — Scenario Model

Current Price
$274
Google Cloud Component
$78/sh
Market Implies
80% chance of upside scenarios
10% collapse probability

Scenario Overview

ScenarioEV$/shProbRevenueOperating Margin %FcfKey Gate
mega bull$1.4T$11857%
bull$680B$5613%
base$256B$2110%
bear$53B$410%
collapse($10B)$010%

Full Year-by-Year Models

Blue = input · Black = computed · Click to expand

Market-Implied Probability Reconciliation

Given these scenario EVs, what probability weights would the market need to assign to produce the current market-implied value of $78/share?

ScenarioCloud Segment EVPer ShareImplied Prob.Weighted Contrib.
mega bull$1.4T$11857.3%$68
bull$680B$5613.2%$7
base$256B$219.8%$2
bear$53B$49.8%$0
collapse($10B)$-19.8%$-0
Total100%$78/sh

Note: These probabilities apply to Google Cloud's contribution to Alphabet equity. Search, YouTube, Waymo+AI, Other Ops, and net cash contribute separately.

Target contribution: $78/sh. Residual: $0.0/sh.

Assumption Sources

growthAnchorFY2025 $58.7B +36%. Q4 +48%. $240B RPO [SEC filing]
aiCatalystGenAI products +400% YoY. TPU Ironwood v7 [Google]. Anthropic mega-deal.
shareGain14% → 23% market share over 10yr. GCP is fastest gainer [Synergy]
marginPathQ4 2025 30.1% → 35% (AWS level). Scale + AI workload mix drives expansion.