Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) may not be the flashiest name among the “Magnificent Seven” stocks, but it has still seen impressive growth. Shares have risen 26.1% since the beginning of the year and 43.5% over the past twelve months, showcasing steady progress.
Despite some concerns such as regulatory scrutiny and competition from other tech giants, Alphabet remains a strong player in the market. Regulatory issues and competition fears may be overblown, as Alphabet’s core cash cow, Google Search, has maintained its dominance despite some challenges.
Looking ahead, Alphabet has the potential for further gains. The company is well-positioned to exceed expectations with its quarterly results, especially with the rebound in the digital advertising space benefiting its Google Search and YouTube segments. Additionally, Google Cloud is experiencing favorable demand trends, while cost efficiency efforts are boosting profitability.
Overall, Alphabet stock is still a solid buy, with the potential to reach $200 or even $225 per share by 2025. A rerating could also push Alphabet into the “$3 trillion club,” solidifying its position among the top tech companies. While the current dividend yield is relatively small, dividends could become a more significant contributor to total returns over time.
In DailyBubble’s opinion, Alphabet remains a top tech stalwart worth holding onto or considering for a new position. The company’s focus on generative AI strategy and financial performance bode well for future growth and success.