
"The tech company's powerful mix of a strong core search and advertising business, alongside other fast-growing businesses, sets it up for more strong growth. After a huge run over the last decade, topped off by a spectacular 2025, some investors may be wondering if Alphabet can keep delivering outperformance for investors. After all, with the company's market capitalization at about $4 trillion, is the search giant still a top stock to buy?"
"When people want to find something, they often start with Google. And when companies want customers, they often advertise on Google and YouTube. But the more interesting part of the story may be what sits next to search and its other well-known consumer-facing digital properties: Its cloud business. Not only is Google Cloud growing faster than Alphabet's core advertising business, but it may be earlier in its growth curve."
"Alphabet's third-quarter results once again reminded investors why Alphabet is a compounding machine. Total revenue in the period rose 16% year over year to $102.3 billion. That was driven by strength across several parts of the business, not just one. Importantly, Alphabet's core "Google Search and other" revenue climbed about 15% year over year to $56.6 billion. With a strong core business, the company is able to confidently invest across all of its business segments."
Alphabet combines a dominant search and advertising franchise with several fast-growing businesses that should sustain future expansion. The company’s market capitalization is about $4 trillion, reflecting a decade of strong gains and a spectacular 2025. Google Search and related revenue rose about 15% year over year to $56.6 billion in the third quarter. Total revenue increased 16% to $102.3 billion. YouTube advertising grew 15% to $10.3 billion, and subscriptions, platforms, and devices revenue rose 21% to $12.9 billion. Google Cloud is expanding faster than advertising and may be earlier in its growth curve. Strong core cash flows enable continued investment across segments.
Read at The Motley Fool
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