"Not only is Alphabet's core business already throwing off tons of cash, but it has a second growth engine that is quickly morphing into a separate material cash machine for the company. When combining this fast-growing cloud computing business with Alphabet's core advertising business (powered by Google Search and YouTube), the technology giant has a lot going for it. Indeed, there may even be a path to the stock doubling in five years -- and that's on top of a huge move higher in 2025."
"Showing Alphabet's impressive momentum, its growth has been accelerating recently. Its revenue grew revenue 14% year over year in the second quarter of 2025, and then 16% in Q3. But the tech company's bottom-line momentum is even more impressive. Alphabet's third-quarter net income hit $35.0 billion, up from $326.3 billion in the year-ago quarter. And earnings per share rose more than 35% year over year."
"Of course, aggressive share repurchases have played a key role in the company's outsize earnings-per-share growth relative to its top-line growth. And investors are likely pleased with the company's still-young but growing dividend; in Q1, Alphabet's board approved a 5% dividend increase and a new $70 billion repurchase authorization. This business momentum, even as the company returns huge sums of capital to shareholders, helps explain the stock's significant move higher this year. Shares have gained an extraordinary 62% year to date."
Alphabet's revenue growth accelerated to 14% year over year in Q2 2025 and 16% in Q3. Third-quarter net income reached $35.0 billion, while earnings per share rose over 35% year over year. Aggressive share repurchases and a 5% dividend increase, alongside a $70 billion repurchase authorization, have amplified shareholder returns. Google Cloud is emerging as a sizable second cash engine that complements the core advertising business powered by Search and YouTube. Continued strength in advertising combined with rapid cloud expansion could push the stock above $600 and enable a potential doubling by 2030 if execution remains strong.
Read at The Motley Fool
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