10 Reasons to Buy Alphabet Stock Like There's No Tomorrow
For nearly three decades, Google's parent Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) has shaped the communications revolution. From leading online search to innovating mobile apps, Alphabet has continued its legacy of innovation into the age of artificial intelligence (AI).
The stock has delivered an impressive 145% return over the past five years; yet, further growth and earnings momentum could still make it a smart bet for investors. Here are 10 reasons Alphabet stock is a great addition to your portfolio today.
1. AI-powered growth
AI is reshaping the economy, boosting productivity and creativity. Alphabet is uniquely positioned to capitalize on the demand, leveraging vast amounts of user data across its diverse platforms to develop cutting-edge AI models such as Gemini.
Alphabet's AI capabilities enhance the user experience while driving efficiency in its core advertising algorithms. Significant investments in AI infrastructure, including custom chips, should ensure Alphabet stays at the forefront of a major growth opportunity.
2. Google search leadership
Alphabet's AI prowess is evident in the company's flagship Google Search service, which commands over 90% of the global search market. Its AI-driven features are improving ad targeting and conversion performance.
In the first quarter, Alphabet posted net revenue growth of 12% on a year-over-year basis, with Google Search increasing 10%. This tailwind has propelled profitability. Earnings per share (EPS) of $2.81 soared 49% compared to the prior-year quarter, suggesting the business is as relevant as ever.
3. Video streaming dominance
Another cornerstone of Alphabet's business is YouTube. The video streaming platform now counts 2.7 billion monthly active users, having evolved into a broader social media ecosystem. The company has seen significant traction in subscription services such as YouTube Premium and YouTube TV, diversifying revenue beyond ads. Alphabet's internet video dominance provides a competitive edge within the tech space.
4. Cloud computing momentum
Fueled by the data-intensive requirements of AI, Google Cloud has also been a key growth driver for Alphabet, capturing market share from competitors like Amazon Web Services (AWS) and Microsoft Azure. Demand for Alphabet's cloud computing enterprise solutions, including AI-driven tools and robust data analytics platforms, drove annual segment revenue growth of 28% in the first quarter.
This development is important given concerns that ongoing regulatory scrutiny might force the company to sell off certain businesses, like the Chrome operating system. Alphabet's newfound AI-powered cloud growth provides a solid foundation for sustained success.
5. Strong profitability and free cash flow
Alphabet's strong Q1 2025 performance sets the stage for continued growth, with Wall Street forecasting full-year revenue to rise 11% and EPS to reach $10.34, a 29% jump from 2024. These robust financial trends underscore Alphabet's investment appeal.
6. A compelling valuation
Even considering its dominance in search, cloud, and AI, Alphabet remains attractively valued compared to other tech giants. Its forward price-to-earnings (P/E) ratio of around 18 stands out as a relative bargain next to " Magnificent Seven" peers like Amazon, Apple, Meta Platforms, Microsoft, and Nvidia, which trade at an average forward P/E closer to 32. This valuation makes Alphabet stock a compelling choice for long-term investors.
GOOGL PE Ratio (Forward) data by YCharts.
7. A resilient macroeconomic backdrop
Despite a delicate global geopolitical environment, resilient economic conditions bode well for Alphabet's overall business, including demand for online advertising and AI solutions. Its digital-first business model is relatively insulated from tariff concerns, offering investors some confidence in the company's outlook.
8. Autonomous driving opportunity
Alphabet's self-driving subsidiary, Waymo, is leveraging the company's AI expertise with a first-mover advantage in robotaxi operations. Industry experts estimate Waymo could capture 10% of the U.S. ride-share market by 2030, a multibillion-dollar opportunity, and a valuable asset within Alphabet's portfolio.
9. Quantum computing investments
There's considerable excitement regarding recent breakthroughs in quantum computing, seen as the next frontier of technology, and Alphabet is investing in the field. In 2024, it announced its Willow quantum processor, which it said achieved "quantum supremacy" by performing complex calculations far beyond the reach of traditional supercomputers. Considering its potential to revolutionize fields like cryptography, simulations, materials science, and AI, Alphabet could unlock significant new revenue streams over the next decade.
10. Global expansion
Alphabet's worldwide presence is growing, as it taps into emerging markets like Africa, India, and Southeast Asia, where internet adoption is surging with billions of new users. Its platforms, including AI initiatives, are well-suited to engage this expanding audience, positioning Alphabet to reward shareholders over the long run.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!*
Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 23, 2025
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors.
Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
26 minutes ago
- Globe and Mail
CODE27 AI Companion Exceeds Crowdfunding Expectations, Ignites Industry Buzz
CODE27 Character Livehouse, first unveiled at CES 2025 this January, successfully concluded its Kickstarter campaign at the end of May, raising over $1.7 million from over 3,200 backers. Described as a Customizable 3D AI Companion Hub, CODE27 drew considerable attention at CES due to its integration of AI companionship, anime girl aesthetics, and otaku culture. It is claimed to be the world's first end-to-end customized AI companion that brings your favorite character to life. CODE27 has redefined success in the AI companion hardware space, achieving one of the most significant crowdfunding milestones in the category's history. This breakthrough significantly outpaces industry benchmarks, where similar projects, such as Ropet and Looi, historically averaged $300,000–$500,000 in funding. 'The funds raised far exceeded our expectations,' said Brandon, a core developer at Sybran Innovation, the company behind CODE27. With over 10 years of experience in global hardware development, Brandon has led core product and R&D efforts at DJI, OPPO, and RayNeo. Besides, the team's expertise also spans Bytedance, EcoFlow, and other major tech innovators. On its Kickstarter page, the CODE27 team shared the inspiration behind the project: We are a passionate group of anime enthusiasts and geeks, eager to share both moments of joy and times of solitude with the characters we love. Believing that we can be truly accompanied by our favorite characters, we've come together to make this dream a reality. Inspired by the seed of Amadeus from Steins;Gate, which has been planted in our hearts for over a decade, we are fully committed to this project. CODE27 allows users to freely customize characters, environments and expressions. Beyond appearances, CODE27 offers an open, highly customizable AI companion platform. Users can connect to any cloud or local AI model, upload custom 3D assets, and even program new behaviors using 'Spellbooks,' giving them deep creative control over how their companion looks, thinks, and interacts. The product launched at $429 for the base unit and $528 for the version that comes with a smart rotating base. AI-powered companion hardware is often referred to as 'desktop pets.' The rise of generative AI has significantly lowered the barrier to human-computer interaction, opening up new possibilities for companionship-based products. As the category grows, it's the products with real innovation and vision that will ultimately succeed. Media Contact Company Name: CODE 27 Contact Person: Amy Ma Email: Send Email Country: China Website:
Globe and Mail
33 minutes ago
- Globe and Mail
Support for solar energy and offshore wind falls among Democrats and independents, AP-NORC poll says
Americans' support for green energy tax credits and renewable energies like wind and solar power has decreased in recent years, according to a new poll, driven by a softening in support from Democrats and independents. The poll from The Associated Press-NORC Center for Public Affairs Research finds that U.S. adults' support for tax credits for electric vehicles and solar panels has weakened, as well as their enthusiasm for offshore wind farm expansion. While Democrats remain the strongest supporters of these initiatives, the poll reveals signs of growing cynicism within their ranks. The poll results coincide with sweeping changes President Donald Trump's Republican administration is making to regulations related to energy and climate change, including slashing the federal workforce in these departments. And although Democrats and independents have weakened their support for some green energy initiatives, there has not been an increase in support for Trump's energy policies. The poll found only about 4 in 10 U.S. adults — including only 1 in 10 Democrats and about 2 in 10 independents, along with three-quarters of Republicans — approve of the way Trump is handling climate change, which largely tracks with his overall approval rating. Democrats and independents drive decline in support for renewable energy credits About 6 in 10 Democrats, 58%, favor tax credits for purchasing an electric vehicle, down from about 7 in 10 in 2022. Among independents, support declined from 49% in 2022 to 28%. Only one-quarter of Republicans supported this policy in 2022, and that hasn't changed measurably. 'As far as the pollution goes ... the vehicles nowadays put out very little emissions to the air,' said JD Johnson, a 62-year-old Democrat from Meadowview, Virginia, who somewhat opposes tax credits to purchase an electric vehicle. That's partly because he sees the electric vehicle manufacturing process as energy intensive and believes gasoline-powered vehicles have made improvements with the pollutants they emit. The decline in favoring solar panel tax credits was across the board rather than being concentrated among Democrats. 'For solar panels, in all honesty, I don't think they're that efficient yet,' said Glenn Savage, 78, a left-leaning independent from Rock Hill, South Carolina. 'I'd rather see them pour money into research and try to get the solar panels more efficient before they start giving tax breaks to the public. I may be wrong on that, but that's just my thought.' Scientists say transitioning to renewable energies and ditching fossil fuels that release planet-warming emissions are essential to protect the planet. Billions of dollars in project grants for clean technologies awarded during President Joe Biden's Democratic administration have been canceled by the Trump administration, and the offshore wind sector has been stunted by Trump's executive order that paused approvals, permits and loans for wind energy projects. Fewer than half of U.S. adults, 44%, now say that offshore wind farms should be expanded in the U.S., down from 59% in 2022. About half favor expanding solar panel farms, while about two-thirds were in support in 2022. When people are concerned about the economy and their personal finances, environmental issues are sometimes prioritized less, said Talbot Andrews, an assistant professor in the department of government at Cornell University who was not involved in the poll. 'I think it makes people anxious to think about increased taxes or increased spending on environmental issues when the cost of eggs are going through the roof,' Andrews said. Low support for Trump's efforts to expand offshore drilling and coal mining Trump has championed the expansion of offshore oil drilling, as well as domestic coal production. Despite a decline in support for expanded renewable energies, the new poll shows that only about one-third of U.S. adults think offshore drilling for oil and natural gas should be expanded in the U.S., and only about one-quarter say this about coal mining. In both cases, Republicans are much more likely than Democrats to support expanding these energy sources. Trump has sought to open up national monuments for oil drilling, but more U.S. adults oppose than support auctioning off more public space for oil drilling. Only about one-quarter of U.S. adults favor this, while 4 in 10 are opposed. Republicans are much more likely than independents or Democrats to be in support. Bipartisan support for consumer rebates and home appliance ratings The Energy Star program that certifies appliances, such as dishwashers and refrigerators, as energy efficient recently appeared in headlines when the EPA made plans to scrap the program. The blue and white logo is well recognized, and experts say the program has long had bipartisan support until recently. The poll found three-quarters of Democrats support providing consumer rebates for efficient home appliances, compared with 6 in 10 Republicans. Patrick Buck, 54, from Chicago, describes himself as a liberal Republican and is a fan of the consumer rebates for energy-efficient appliances. 'It seems to work in terms of transforming what people have in their houses, because a lot of people have a lot of old appliances and just can't afford new ones,' he said. Safe air, water, meat and produce The poll found only about 2 in 10 U.S. adults are 'extremely' or 'very' confident in the federal government's ability to ensure the safety of their drinking water, the air they breathe and the meat, poultry, fruits and vegetables they buy in grocery stores. About 4 in 10 U.S. adults are 'somewhat' confident in the federal government's ability to ensure the safety of each of these, and about 4 in 10 are 'not very' or 'not at all' confident. The Trump administration has announced plans to roll back rules and policies related to limiting pollution and greenhouse gas emissions, such as rules that limit pollution from power plants and blocking California's efforts to phase out cars that run on gas. The federal government has also cut staff at the Food and Drug Administration, the federal agency tasked with protecting public health and ensuring food supply safety. ___ The AP-NORC poll of 1,158 adults was conducted June 5-9, using a sample drawn from NORC's probability-based AmeriSpeak Panel, which is designed to be representative of the U.S. population. The margin of sampling error for adults overall is plus or minus 4 percentage points. ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. The AP is solely responsible for all content. Find the AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
National Post
an hour ago
- National Post
HSBC Experts Share Strategies for Managing Art as an Alternative Asset Class
Article content Sorry, your browser doesn't support embedded videos. Article content HSBC Private Banking Hosts 'Artfully Investing: An Art Market Update and Private Planning Discussion' at the renowned Berry Campbell Gallery Article content Article content NEW YORK — HSBC Private Banking's Women's Committee welcomed an exclusive group of clients and industry leaders for Artfully Investing, a discussion exploring the intersection of art, wealth planning, and legacy building. Hosted in the vibrant setting of Berry Campbell Gallery in Chelsea, Manhattan, the event brought together a distinguished panel of experts to discuss the evolving art market, collection strategy, and critical planning issues for sophisticated collectors. Article content Moderated by Carly Doshi, Head of Wealth Planning and Advisory at HSBC, the panel featured insights from Christine Berry, Co-Founder of the Berry Campbell Gallery; Gabrielle Segal, Founder of GS Art Concierge; and Ron Fiamma, President and Co-Founder of Treadwell. Together, the panel addressed topics ranging from art valuation and estate planning to insurance and emotional investment in collecting. Article content 'We want collectors, both new and experienced, to think through how their collections fit into their broader financial and estate-planning strategy,' said Doshi. 'Our aim is to bring together clients, colleagues, and friends for meaningful conversations about enhancing personal wealth and legacy.' Article content Against the backdrop of a new solo exhibition by surrealist painter Lucia Wilcox, the conversation emphasized not just financial best practices, but also the social and emotional dimensions of collecting. The gallery, co-founded by Christine Berry and Martha Campbell, has made a name for itself by championing historically overlooked artists, particularly women working in postwar and contemporary movements. Article content Panel Highlights: Article content Carly Doshi underscored the importance of integrating art holdings into a holistic wealth plan—including estate tax strategy, insurance, and collaboration with financial professionals. Gabrielle Segal encouraged collectors to maintain 'financial hygiene,' stressing the importance of regular appraisals, insurance updates, and understanding motivations behind collecting. Ron Fiamma addressed emerging risks and trends, including climate-related threats to physical assets and the growing use of art as collateral in sophisticated planning strategies. Christine Berry shared the gallery's mission to rewrite art history by spotlighting underrepresented voices, while also educating collectors on tax implications and the role of professional appraisers. Article content Berry Campbell Gallery, a woman-founded institution that has expanded since its inception in 2013, hosted the event. With a growing reputation for discovering and re-contextualizing overlooked artists, the gallery continues to make waves in the international art world. Article content HSBC's Artfully Investing series reflects the bank's commitment to empowering clients with the knowledge and tools to protect and grow their collections—not only as valuable assets but as lasting legacies. Article content About HSBC Article content , is headquartered in London. HSBC serves customers worldwide from offices in 58 countries and territories. With assets of US$3,054bn at 31 March 2025, HSBC is one of the world's largest banking and financial services organizations. Article content HSBC Bank USA, National Association (HSBC Bank USA, N.A.) Article content serves customers through International Wealth and Premier Banking (IWPB) and Corporate and Institutional Banking (CIB). Deposit products are offered by HSBC Bank USA, N.A., Member FDIC. It operates Wealth Centers in: California; Washington, D.C.; Florida; New Jersey; New York; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC North America Holdings Inc. HSBC Innovation Banking in the U.S. is a business division with services provided in the United States by HSBC Bank USA, N.A. Article content Article content
