Why Alphabet Stock Is Still My Top Investment Pick in 2025

1. Alphabet dominates search and advertising, with Google Search holding over 90% market share and YouTube ad revenue growing steadily.

2. Google Cloud is rapidly expanding, with 30% YoY growth and newly achieved profitability.

3. AI is a strength, not a threat, as Alphabet integrates it into search, ads, and cloud services.

4. The market undervalues Alphabet, focusing on risks while ignoring strong revenue growth and cash flow.

5. Despite competition and regulation, Alphabet’s diverse business model and innovation secure long-term success.

Why I'm Taking Another Look at Alphabet

Alphabet (Google's parent company) is still the best investment idea I've found. The recent drop in the stock market gives us another chance to buy one of the world's strongest companies at a lower price. Some people worry that AI chatbots might hurt Google Search or that government regulators are watching the company too closely. But when you look at the facts, Alphabet's business is still incredibly strong. Let me explain why I think Alphabet is a great buy right now.

Google Search: The Money-Making Machine

Google Search is the heart of Alphabet's business, bringing in more than half of all its money. Even with AI chatbots becoming popular, Google still handles over 90% of all internet searches worldwide. Digital advertising continues to be very profitable, and companies are moving their ad budgets from TV and newspapers to targeted online ads—where Google shines.

YouTube is also becoming more and more valuable, with people watching billions of hours of videos every day. YouTube's ad money keeps growing by double digits each year. The idea that AI will suddenly make Google Search useless just isn't realistic—people will always need to find information, and Google is still the best at helping them do that.

Google Cloud: The Hidden Gem

Google Cloud is finally proving itself as a serious competitor in the cloud computing world. While it's been behind Amazon's AWS and Microsoft's Azure for years, it's now growing really fast—30% bigger than last year! The best part? Google Cloud is finally making money instead of losing it. This is a big deal.

As more businesses use AI, they need Google's cloud services to run their AI programs. As more companies move to cloud computing, Google Cloud could become a major source of Alphabet's profits in the coming years.

AI: Google's Secret Weapon

Many people think AI threatens Google's business, but it's actually one of Alphabet's biggest strengths. Google has been working on AI for many years. Their Gemini AI model shows how deeply AI is already part of everything they do. Whether it's making search better, improving ads, or helping their cloud business, AI is helping Google grow—not holding it back.

Because of Google's size, massive data, and technical know-how, they're positioned to be a leader in AI's future. This helps make sure the company stays competitive as the digital world changes.

Why The Stock Price Is Too Low

Despite all these strengths, Alphabet's stock is cheaper than similar companies like Microsoft and Amazon. Investors have been too worried about potential problems like government regulations and AI competition. Meanwhile, they're not paying enough attention to Alphabet's steady growth and improving profits.

The company continues to generate huge amounts of cash, with its advertising and cloud businesses driving future earnings growth. With a price-to-earnings ratio lower than other big tech companies, this skepticism creates an opportunity for long-term investors to buy a great business at an attractive price.

The Risks: What Could Go Wrong

While I strongly believe in Alphabet, it's important to talk about the risks. The biggest concern is competition from AI-powered search, but these new chatbot search tools still struggle to make money. Government regulation is another worry, as officials continue to investigate big tech companies. Also, competition in cloud computing is fierce, with AWS and Azure leading the market.

However, Alphabet's diverse business, strong financial position, and continued innovation provide good protection against these risks. Throughout history, great companies adapt to challenges, and Alphabet has consistently shown it can evolve and succeed.

Conclusion: Why I'm Buying Alphabet Stock Now

Alphabet is one of the strongest businesses on the planet, but the market still underestimates its long-term potential. They dominate search and digital advertising, have a fast-growing cloud business, and are leading in AI innovation. With plenty of cash and strong profits, Alphabet is well-positioned for the future.

The current stock price gives us a chance to invest in a top-quality company at a discount. If you have any questions, please email me—I'd love to hear what you think. And if you found this helpful, please share it with a friend who might benefit from it too.

Happy investing!
Josh

The information is provided for educational purposes only and does not constitute financial advice or recommendation and should not be considered as such. Do your own research.