From Nasdaq: 2025-06-06 07:15:00

Alphabet, parent company of Google and Youtube, has seen its shares rise by 6,560% since its IPO in 2004, with a market cap of $2 trillion. The company generated $67 billion in digital advertising revenue in Q1, with Google Search and YouTube driving growth. AI chatbots and AI Overviews are key to future success.

Google Cloud is gaining importance, with revenue growth of 28.1% in Q1. Operating income is $2.2 billion, with a 17.9% operating margin. AI is integral to Alphabet’s strategy, aiding advertising customers and powering Google Cloud’s AI products like Vertex AI. Waymo, Alphabet’s autonomous driving division, also leverages AI.

Alphabet plans to spend $75 billion on capital expenditures this year, but has $95 billion in cash on hand. With a forward P/E ratio of 17.5, Alphabet seems like a good investment. Consider joining Stock Advisor for top stock picks. Charles Schwab is an advertising partner, and Suzanne Frey sits on The Motley Fool’s board.

Investors may find Alphabet a compelling opportunity, as the company continues to innovate and leverage AI across its various businesses. With strong financials and a focus on growth, Alphabet remains a top tech stock for investors to consider. Join Stock Advisor for more insights on potential market-beating stocks.



Read more at Nasdaq: Alphabet Stock: Still a No-Brainer Buy in 2025?