No-Brainer Trillion-Dollar Stock to Buy: Alphabet's Incredible Track Record and Exciting Long-Term Growth Avenues

Alphabet is a leading innovator with multiple growth avenues, including search engine dominance, cloud computing, AI services, and YouTube streaming. Despite its impressive track record and growth potential, the stock trades at reasonable levels and is undervalued. With a projected upward trajectory in the digital advertising market and increasing demand for AI and cloud computing, Alphabet is a no-brainer buy for long-term investors.

Alphabet Inc. (GOOGL), the parent company of Google, is a leading innovator with multiple growth avenues, including search engine dominance, cloud computing, AI services, and YouTube streaming. Despite its impressive track record and growth potential, the stock trades at reasonable levels and is undervalued. With a projected upward trajectory in the digital advertising market and increasing demand for AI and cloud computing, Alphabet is a no-brainer buy for long-term investors.

Alphabet's search engine, Google, holds an 89.5% global market share, a near-impossible moat to breach. Its ad platform, tied to search traffic, remains a cash machine. The company's AI and cloud computing segments are rapidly expanding. Google Cloud, now a $30+ billion business, is rapidly expanding its AI capabilities, outpacing competitors like AWS and Azure with 28% year-over-year revenue growth. Alphabet's AI investments, including Gemini and Bard, are creating new revenue streams, estimated to generate $50 billion+ by 2027 [2].

YouTube, owned by Alphabet, captured 12.5% of television viewing time in the U.S. in May, significantly higher than Netflix's 7.5%. Higher engagement on the platform will lead to increased ad revenue for Alphabet over the long term. Waymo, Alphabet's self-driving vehicle division, operates ride-hailing services in several major U.S. cities, with potential to become much more widespread and contribute to Alphabet's financial results [1].

Despite its impressive growth prospects, Alphabet's forward price-to-earnings ratio of 19.2 is slightly lower than the average for the communication services sector, which is 19.7. The stock looks attractive even if regulators get what they want, given the company's incredible innovative culture, significant cash flow of $74.9 billion over the trailing-12-month period, and multiple growth paths [1].

Alphabet's AI-first strategy and cloud growth make it a safer pick for investors seeking undervalued tech exposure. The company's $200 billion cash reserves and 15% operating margin provide ample cushion against headwinds. Alphabet is helping build the future, and in the future, the company will be rewarded for it. And so will the tech leader's shareholders.

References:
[1] https://www.fool.com/investing/2025/07/19/1-no-brainer-trillion-dollar-stock-to-buy-like-the/
[2] https://www.ainvest.com/news/alphabet-amazon-ultimate-growth-stocks-2025-2507/