• From Nasdaq: Feb 4, 2024

  Alphabet (NASDAQ: GOOGL) has faced doubt despite being an AI innovator for over 20 years. The stock dropped 6% in after-hours trading following a respectable Q4 report. But with a strong advertising segment representing 76% of Q4 revenue, and Google Cloud reporting a 26% revenue increase, growth continues. Alphabet also maintains $111 billion in liquidity.

Investors should not ignore Alphabet’s long-term potential. The company’s AI potential continues to grow, even as its liquidity and free cash flow decreased. With its focus on AI, advertising growth, and significant cash position, Alphabet remains competitive in the long term. This should mean Alphabet continues as a player in AI and enriches its shareholders.

Before investing in Alphabet, consider The Motley Fool’s best stock picks. Suzanne Frey, an executive at Alphabet, sits on The Motley Fool’s board, and the Fool has positions in and recommends Alphabet and Microsoft.

Read more: 3 Takeaways From Alphabet’s Fourth Quarter That Bode Well for Its Stock